Pablo Company calculates the cost for an equivalent unit of production using process costing.

Data for June

Work-in-process inventory, June 1: 30,000 units

Direct materials: 100% complete............................................. $ 60,000

Conversion: 40% complete...................................................... 24,000

Balance in work-in-process, June 1.......................................... $ 84,000

Units started during June .........................................................70,000

Units completed and transferred out ............................................70,000

Work-in-process inventory, June 30 ...........................................30,000

Direct materials: 100% complete

Conversion: 80% complete

Cost incurred during June

Direct materials ................................................................$120,000

Conversion costs

Direct labor ......................................................................120,000

Applied overhead ...............................................................180,000

Total conversion costs ........................................................$300,000

Required

1. Compute cost per equivalent unit for both the weighted-average and FIFO methods.

2. Explain the difference between the FIFO and weighted-average unit costs.