a Calculate equivalent units of direct materials and conversion costs during March using the FIFO method b Calculate the cost per equivalent unit for both direct materials and conversion costs during March using the FIFO method. c Explain whether you agree with Gina. Illustrate your answers with one example.

Smart Electronics (Smart) manufactures an electronic component called 'Thor. The company adopts a process costing system for its manufacturing operations. Due to uncertainty of adequate supplies as a result of COVID-19, the conversion and direct material costs vary significantly month by month. All direct materials are added when 70 percent of the process is completed, and conversion costs are incurred uniformly throughout the process. The company currently uses the first- in-first-out (FIFO) method. The following is the company's production schedule in March 2020: Physical units Direct Conversion (Thor) materials costs Beginning work in process (1 March) 4,000 ? 80% Started in March 6,000 Units to account for 10,000 4,000 ? 1,000 10.000 ? 50% Units from beginning work-in-process (completed and transferred out during March) Started and completed in March Work-in-process inventory, 31 March Total units accounted for The following cost data are available: Work-in-process inventory, 1 March Direct materials Conversion Costs incurred during March Direct materials Conversion $36,000 $60,000 $260,000 $180,000 The CFO of Smart Electronics, Gina, stated that Smart Electronics should change to the weighted average cost method during COVID-19 because this method is simpler than the first-in-first-out (FIFO) method