1) Shanghai Industries Ltd. uses an automated process in its manufacturing operations. On November 1, the company had 25,000 units in beginning work in process which were 80% complete with respect to conversion. During the month of November, it started 120,000 into production. On November 30, there were 20,000 units in process, which were 40% complete with respect to conversion. Direct materials are added at the beginning of the process, and no units are spoiled in production.

The beginning inventory had direct materials costs of $105,750 and conversion costs of $45,500. During the month, the company issues $510,000 of direct materials and incurred $203,400 of conversion costs.

Determine the equivalent units and the assignment of costs to units transferred-out and inventories using the FIFOmethod using the following worksheet.

FIFO method

Production Worksheet
	Flow of Production:	Total	Direct	Conversion
	To account for
	Units completed
	Accounted for
	Flow of Costs:
	Equivalent unit costs
	Assignment of costs:
	Costs accounted for