Magic Company adds materials at the beginning of the process in Department A. The following information on physical units for Department A for the month of August is available.
Work in process, August 1 (57% complete with respect to conversion) 16,800
Started in August 121,100
Completed 121,100
Work in process, August 31 (78% complete with respect to conversion) 16,800 Required:
a. Compute the equivalent units for materials costs and for conversion costs using the weighted-average method.
b. Compute the equivalent units for materials costs and for conversion costs using the FIFO method.