1. Do Exercise 5-19 using the FIFO method. Note that you first need to calculate the equivalent units of work done in the current period (for direct materials and conversion costs) to complete beginning work in process, to start and complete new units, and to produce ending work in process.
Refer to 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.

2. If you did Exercise 5-19, Should Fielding's managers choose the weighted-average method or the FIFO method? Explain briefly.

Transcribed Image Text:

Equivalent Units Direct Materials 8,700 Physical Units 8,700“ 34,500 Conversion Costs Work in process, July 1 Started during July Completed and transferred out during July Work in process, July 31 1,305 32,000 32,000 32,000 11,200 11,200 7,840 "Degree of completion: direct materials, 100%; conversion costs, 15%. "Degree of completion: direct materials, 100%; conversion costs, 70%. Total Costs for July 2013 Work in process, beginning Direct materials $61,500 Conversion costs 43,200 $104,700 Direct materials added during July 301,380 Conversion costs added during July 498,624 Total costs to account for $904,704