Hoyt, Incorporated has a process costing system at its Forest Street Plant. All materials are introduced when conversion costs reach 40 percent. The following information is available for physical units during August: Units started in August 163,000 Units transferred out to Finishing Department in August 178,000 Work in process, August 1 (8595 complete as to conversion costs) 41,000 Work in process, August 31 (2595 complete as to conversion costs) 26,000 Required: 3. Compute the equivalent units for materials costs and for conversion costs using the weightedaverage method. b. Compute the equivalent units for materials costs and for conversion costs using the FIFO method. c. The company president has been under considerable pressure to increase income. He tells the controller to change the estimated completion for ending work in process to 45 percent (from 25 percent). c-1. What effect will this change have on the unit costs of units transferred to nished goods in March? c-2. Would this be ethical? c-3. Is this likely to be a successful strategy for affecting income over a long period of time? x Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Req A Req B Req C1 Req C2 Req C3 Compute the equivalent units for materials costs and for conversion costs using the FIFO method. Equivalent Units Materials 137,000 Conversion costs 204,000 X