Reference no: EM132567907

Question 1: Golden Company, had 6,000 units in work-in-process at January 1 that were 60% complete as to conversion costs. During January, 20,000 units were completed. At January 31, 8,000 units remained in WIP which were 40% complete to conversion costs. Materials are added at the beginning of the process.

Required:

a) Using the Weighted average method, compute the equivalent units for January for conversion costs.

b) How many units were started during January?

Question 2: Wookie Company adds materials at the beginning of the process in Department M. Conversion costs were 75% complete as to the 8,000 units in WIP at May 1 and 50% complete as to the 6,000 units in WIP at May 31. During May, 12,000 units were completed and transferred to the next department. An analysis of the costs relating to WIP at May 1 and to production activity for May is as follows:

Materials Conversion

Work in process, May 1 ............ P9,600 P4,800

Costs added this May ............ 15,600 14,400

Required: Compute the total cost per equivalent unit for the month of May using the FIFO Method and Average Method.