FIFO Method Refer to the information in Problem 6-39.

In Problem 6-39, South Atlantic Pulp Company processes wood pulp for manufacturing various paper products. The company employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. This is the company’s production schedule for May:

		PERCENT COMPLETE
	Tons of Pulp	Materials		Conversion
Work-in-process inventory, May 1	6,000	100%		50%
Started during May	15,000
Units to account for	21,000
Units from beginning work-in-process
which were completed and
transferred out during May	6,000
Started and completed during May	12,000
Work-in-process inventory, May 31	3,000	100%		50%
Total units account for	21,000

The following cost data are available:

Work-in-process inventory, May 1

Direct materials ...........$ 88,000

Conversion ............ 126,000

Costs incurred during May

Direct materials ........... 220,000

Conversion ............ 356,000

Required

1. Calculate the equivalent units of direct materials and conversion costs for May. Use the FIFO method.

2. Calculate the cost per equivalent unit for both direct materials and conversion cost for May. Use the FIFO method.