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 (60% complete with respect to conversion) . . . . . 72,000
Started in August . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 480,000
Completed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 480,000
Work in process, August 31 (30% complete with respect to conversion) . . . . 72,000
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.