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Question - Conlon Chemicals manufactures paint thinner. Information on the work in process follows:
Beginning inventory, 39,000 partially complete gallons.
Transferred out, 206,000 gallons.
Ending inventory (materials are 21 percent complete; conversion costs are 8 percent complete).
Started this month, 243,000 gallons.
Assume that beginning inventory is 50 percent complete with respect to materials and 29 percent complete with respect to conversion costs.
Required -
a. Compute the equivalent units for materials using FIFO.
b. Compute the equivalent units for conversion costs using FIFO.
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