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Question - Magic Company adds materials at the beginning of the process in Department A. The following information on physical units for Department A for the month of August is available.
Work in process, August 1 (59% complete with respect to conversion) 16,300
Started in August 119,400
Completed 119,400
Work in process, August 31 (72% complete with respect to conversion) 16,300
Required -
a. Compute the equivalent units for materials costs and for conversion costs using the weighted-average method.
b. Compute the equivalent units for materials costs and for conversion costs using the FIFO method.
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