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Question - Stanley Cup Inc. for last month in the games department started 15,000 units into production. The department had 5,600 units in process at the beginning of the month, and these units were 60% complete with respect to conversion costs. There were 6,800 units in process at the end of the month, and these units were 35% complete with respect to conversion costs. A total of 13,800 units were completed and transferred to the next department during the month.
1. For last month calculate the equivalent units for conversion using the weighted-average method.
2. For last month calculate the equivalent units for conversion using the FIFO method.
3. The CFO company would like you to determine if there is a difference in the equivalent units for the two methods and if so, why?
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