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The Metal Works Company manufactures a product that goes through two departments prior to completion. The following information is available on work in one of these departments, the Forming Department, during March:
Cost in the beginning work-in-process inventory and cost added during the month were as follows:
The Forming Department is the first department in the production process; after forming has been completed, the units are transferred to the Finishing Department.
Required:
Question a) Assuming the company uses the weighted-average method, calculate the equivalent units and unit cost for materials and conversion costs, rounded to the nearest tenth of a cent. Show your work.
Question b) Assuming the company uses the FIFO method, calculate the equivalent units and unit cost for materials and conversion costs, rounded to the nearest tenth of a cent. Show you work.
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