Refer to the information in Problem 6-37.

Required

Complete Problem 6-37 using the FIFO method.

In Problem

Weatherly Lumber 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:

The following cost data are available:

Work-in-Process Inventory, May 1
Direct materials.......................................$ 94,000
Conversion................................................133,120
Costs incurred during May
Direct materials........................................229,800
Conversion................................................376,000

Required

1. Calculate the equivalent units of direct materials and conversion during May. Use the weighted-average method.

2. Calculate the cost per equivalent unit for both direct materials and conversion during May. Use the weighted-average method.

Transcribed Image Text:

Percentage Completed Tons of Pulp Materlals Converslon Work-In-Process Inventory, May 1 Started during May 100% 5,000 15,000 50% 20,000 Units to account for Units from beglnning Work-In-Process, which were completed and transferred out during May Started and completed during May Work-In-Process Inventory, May 31 5,000 12,000 3,000 100% 50% Total units accounted for 20,000