1.BBB Inc. provided the following data for the year ended December 31, 2019.

a.It is the company's policy to add conversion cost evenly throughout the period while 4/5 of the direct materials are added at the start of the process while the remaining direct materialsare added at the end of the process.

b.10% of units started are normally spoiled.

c.The January 1, 2019 WIP consists of 20,000 units with the following costs: P400,000 direct material, P500,000 direct labor and 100,000 factory overhead. The beginning inventory is 72% complete as to conversion cost.

d.The total manufacturing cost added during the year consists of P1M direct material, P1.2M direct labor and P300,000 factory overhead.

e.The units started during the year totalled 80,000 units while the units completed totalled 60,000 units.

f.The December 31, 2019 WIP inventory consists of 10,000 units which is 20% incomplete as to conversion cost.

g.The inspection point occurs when the percentage of completion is 75% as to conversion cost.

WITH COMPLETE SOLUTION; Compute for the cost equivalent unit for direct material and conversion cost respectively, using the following methods:

a.FIFO Method (5 pts)

b.Weighted Average Method (5 pts)