1.

Conlon Chemicals manufactures paint thinner. Information on the work in process follows: Beginning inventory. 40,000 partially complete gallons. Transferred out, 214,000 gallons. Ending inventory (materials are 20 percent complete conversion costs are 9 percent complete). . Started this month, 240,000 gallons. Assume that beginning inventory is 50 percent complete with respect to materials and 30 percent complete with respect to conversion costs Required: a. Compute the equivalent units for materials using FIFO. b. Compute the equivalent units for conversion costs using FIFO. Equivalent Units (gallons) Milenials Conversion costs