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[The following information applies to the questions displayed below.] The Matsui Lubricants plant uses the FIFO method to account for its work-in-process inventories. The accounting records show the following information for a particular day.
Beginning WIP inventory
Direct materials
$
976
Conversion costs
272
Current period costs
Direct materials
11,440
Conversion costs
6,644
Quantity information is obtained from the manufacturing records and includes the following.
Beginning inventory
600
units
(60% complete as to materials, 53% complete as to conversion)
Current period units started
4,000
units
Ending inventory
1,200
units
(40% complete as to materials, 20% complete as to conversion)
Required:
a. Compute the equivalent units for the materials and conversion cost calculations.
b. Compute the cost per equivalent unit for direct materials and for conversion costs using the FIFO method.
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