Question: 1 Do Exercise 5 19 using the FIFO method 2

1. Do Exercise 5- 19 using the FIFO method.
2. If you did Exercise 5- 19, should Fielding’s managers choose the weighted- average method or the FIFO method? Explain briefly.

Exercise 5- 19
Fielding Corporation is a biotech company that makes a cancer- treatment drug in a single processing department. Direct materials are added at the start of the process. Conversion costs are added evenly during the process. Fielding uses the weighted- average method of process costing. The following information for July 2013 is available.

aDegree of completion: direct materials, 100%; conversion costs, 15%.
bDegree of completion: direct materials, 100%; conversion costs, 70%.

1. Calculate the conversion cost rates for each department.
2. Calculate the budgeted cost of goods manufactured for vitamin A, vitamin B, and the multivitamin for the month of July.
3. Calculate the cost per 200- unit bottle for each type of vitamin for the month ofJuly.

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