Using the data in E 5 and assuming that the company uses the average costing method, compute the equivalent units of production for direct materials and conversion for August.

O’Leon Enterprises makes Perfect Shampoo for professional hair stylists. On July 31, it had 5,200 liters of shampoo in process that were 80 percent complete in regard to conversion costs and 100 percent complete in regard to direct materials costs. During August, it put 212,500 liters of direct materials into production. Data for Work in Process Inventory on August 31 were as follows:
shampoo, 4,500 liters; stage of completion, 60 percent for conversion costs and 100 percent for direct materials. From this information, compute the equivalent units of production for direct materials and conversion costs for the month. Use the FIFO costing method.