Reference no: EM132734862

The matsui lubricants plant uses the FIFO method to account for its work in process inventories. the accounting records show the following information for a particular day.

Beginning WIP inventory

direct materials $976
conversion cost $272
current period costs
direct materials $11,440
conversion cost $6,644

quantity information is obtained from the manufacturing records and includes the following:

1. beginning inventory 600 units (60% complete to materials and 53% complete to conversion)
2. current period units started 4000 units
3. ending inventory 1200 units (40% complete to materials and 20% complete to conversion)

Problem a. compute the equivalent units for the materials and conversion cost calculations

Problem b. compute the cost per equivalent unit for direct materials and for conversion costs using the FIFO method