Refer to the information in Exercise and complete the requirements for each of the three separate assumptions using the FIFO method for process costing.
In Exercise
The production department in a process manufacturing system completed 80,000 units of product and transferred them to finished goods during a recent period. Of these units, 24,000 were in process at the beginning of the period. The other 56,000 units were started and completed during the period. At period-end, 16,000 units were in process. Compute the department’s equivalent units of production with respect to direct materials under each of three separate assumptions, using the weighted average method:
1. All direct materials are added to products when processing begins.
2. Beginning inventory is 40% complete as to materials and conversion costs. Ending inventory is 75% complete as to materials and conversion costs.
3. Beginning inventory is 60% complete as to materials and 40% complete as to conversion costs. Ending inventory is 30% complete as to materials and 60% complete as to conversion costs.