operation. This year, Stretch's main processing department reported the following activity and costs.

All DM resources are added to Stretch's processing department at the beginning of processing. Conversion costs are added evenly throughout the process.

Required

a$.$ Complete Steps $1-5$ of the template for Stretch Enterprises this year using the FIFO method of process costing, clearly labeling the following.

Equivalent units of production for both DM and conversion costs.

The cost per equivalent unit for both DM and conversion costs.

The total cost of units completed and the total cost of units in ending WIP Inventory.

b$.$ Record the following journal entries.

Transfer of DM costs from RM Inventory into the processing department this year.

Recognition of conversion costs incurred for the period; assume all DL costs are paid in cash, totaling $$2,500.$

The completion of units; they are now ready for sale.