Holly Company has the following information for December 1 to December 31. All direct materials are 100% complete.

Required

1. Calculate equivalent units using the weighted-average and FIFO methods.

2. Use the given information to determine whether Holly Company is using the FIFO or weighted-average method.

Transcribed Image Text:

Work-In-Process Beglnning balance December 200 unts, Completed 800 units and transferred to Finlshed $131,182 20% complete Goods Inventory $14,000 for converslon Direct materlals 54,000 Direct labor 34,000 Factory overhead Property taxes Depreclation 6,000 32,000 Utilitles 18,000 4,000 Indirect labor Ending balance December 31, 300 units, 40% complete 30,818