Exercise $8-21($Static$)$ Compute

Equivalent Units: FIFO Method

$($LO $8-1,5)$

Trevor Mills produces agricultural feed at

its only plant. Materials are added at the

beginning of the process. Information on

work$-$in$-$process in December follows:

Beginning inventory, $16,000$ partially

complete units, $10$ percent complete

with respect to conversion costs.

Units started in December, $77,000$ units.

Units transferred out in December,

$73,000$ units.

Ending inventory, $20,000$ units, $62$

percent complete with respect to

conversion costs.

Required:

Compute the equivalent units for

materials and conversion costs for

December using the FIFO method.