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Problem - Dmahirap Company adds all materials at the beginning of the process in the first department. Conversion costs were 75% complete as to 8,000 units in WIP, beg and 50% complete as to 6,000 units in WIP, end. During the month, 12,000 units were completed and transferred to the next department. Analysis of the costs relating to production for October follows:
Materials
Conversion Cost
WIP, beg
P9,600
P4,800
Costs added this month
15,600
14,400
Required -
a. How much is the cost per equivalent unit for the month using FIFO?
b. How much is the cost per equivalent unit for the month using Average costing?
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