1. Do Exercise 17- 24 using the FIFO method.

In Exercise 17-24, Tomlinson Corporation is a biotech company based in Milpitas. It 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. Tomlinson uses the weighted-average method of process costing. The following information for July 2014 is available.

2. Tomlinson’s management seeks to have a more consistent cost per equivalent unit. Which method of process costing should the company choose andwhy?

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Equivalent Units Conversion Costs 2,175 Physical Units 8,700* 34,500 32,000 11,200* Direct Materials Work in process, July 1 Started during July Completed and transferred out during July Work in process, July 31 8,700 32,000 11200 32,000 7840 Degree of completion: direct materials, 100%; conversion costs, 25%. bDegree of completion: direct materials, 100%; conversion c0sts, 70%. Total Costs for July 2014 Work in process, beginning Direct materials $61,500 Conversion costs Direct materials added during July Conversion costs added during July Total costs to account for 43,200 $104,700 301 380 498,624 $904,704