Problem 3. On September 1, Marvelous Company had a work-in-process inventory of 5,000 units. The units were 100% complete for material and 30% complete for conversion, with respective costs of $15,000 and $925.

During the month, 75,000 units were completed and transferred to finished goods. The September 30 ending work-in-process inventory consisted of 5,000 units that were 100% complete with respect to materials and 80% complete with respect to conversion.

Costs added during the month were $165,000 for materials and $251,875 for conversion.

Required:

Using the weighted-average method and FIFO method, calculate:

1. total equivalent units for material and conversion.

2. the cost per equivalent unit for material and conversion.

3. the cost transferred to finished goods and ending work in process.

4. Explain the main difference between both methods.