Magic Company adds materials at the beginning of the process inDepartment A. The following information on physical units forDepartment A for the month of August is available:
| | |
| Work in process, August 1 (58% complete with respect toconversion) | 16,400 | |
| Started in August | 118,800 | |
| Completed | 118,800 | |
| Work in process, August 31 (71% complete with respect toconversion) | 16,400 | |
|
Required:
a. Compute the equivalent units for materialscosts and for conversion costs using the weighted-averagemethod.
b. Compute the equivalent units for materialscosts and for conversion costs using the FIFO method.
