EXERCISE 1 Cost per equivalent unit; weighted average Kimbos Glass Company manufactures decorative glass bowls. The following data relate to May's operations Work in process, 1 May: Direct material $21,600 Conversion 20,150 Costs incurred during May: Direct material $67,500 Conversion 95,000 The equivalent units of activity for May were as follows: 8,250 equivalent units of direct material, and 23,500 equivalent units of conversion activity. Required: Calculate the cost per equivalent unit for both direct material and conversion during May. Use weighted average process costing. EXERCISE 2 Weighted average cost and FIFO: manufacturer The following data relate to Twilight Manufacturing Ltd: During July, 133,500 units were completed and transferred out. Work in process, 1 July: 15,000 units* Direct material $16,350 Conversion 43,425 Costs incurred during July: Direct material $169,050 Conversion 240,300 *Complete as to direct material; 35% complete as to conversion The equivalent units for July were as follows: Weighted average FIFO Direct material 154,500 139,500 Conversion 145,500 140,250 Required: 1. Calculate each of the following amounts using weighted average process costing: (a) cost of goods completed during July (b) cost of the 31 July work in process inventory. 2. Repeat requirement 1 using the FIFO method