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) 16,700
Started in August 121,700
Completed 121,700
Work in process, August 31 (72% complete with respect to conversion) 16,700
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.

Solution:

a) Calculation of Equivalent Units using weighted average method :-

Materials = Complete Unit + Work in Process Inventory

= 121,700+ 16,700

= 138,400 Units

Conversion Costs = Complete Units + 72% of ending Work in Process inventory

= 121,700+ 72% * 16,700

= 121,700+ 12,024

= 133,724 units

b) Calculation of Equivalent Units using FIFO Method.

Materials = Complete Units + ending work in process

= (16,700- 121,700) + 16,700

= 4530 + 16,700

= 21,230 units

Conversion Cost = Beginning Work in Process + Complete Units + Ending Work in Process

= (16,700*57%) + (121,700- 16,700) + (16,700*72%)

= 126,543 units

muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

the east for trading with asia.

answer decisions made by individual households and firms;