Computing equivalent units. FIE uts, FIFO and weighted average cost methods Assume each of the followi 'wing conditions concerning the data given: 1 All materials are added at the beginning of the process. 2 All materials are added at the end of the process. (Note that this would have to be a department subsequent to the first department for all materials to be added at the end of the pro- cess, but ignore that fact for purposes of this solution.) 3. Half of the materials are added at the beginning of the process, and the balance of the materials is added when the units are three-fourths completed. In all cases, labor and factory overhead are added evenly throughout the process. Production Summary Work in process, beginning of month ......... Stage of completion..... Started in process............... Finished and transferred. Work in process, end of month........ Stage of completion..... Dept. 1 3,000 1/2 18,000 19,000 2,000 3/4 Units Dept. 2 1,500 3/5 16,000 15,500 2,000 1/2 Dept. 3 1,200 4/5 21,000 21,000 1,200 114 Accounting 1. Compute separate equivalent units of production, one for materials and one for labor and factory overhead, for each of the conditions listed, using (a) the weighted average cost method and (b) the FIFO cost method. 2. When would the equivalent units be the same under the weighted average costing method and the FIFO costing method? Making a journal 2