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Aaron Company has a process costing system. All materias are introduced when conversion costs reach 50 percent The tollowing intormation is avallable for prysical units
Aaron Company has a process costing system. All materias are introduced when conversion costs reach 50 percent The tollowing intormation is avallable for prysical units during March work in process, March 1 (70% complete as to conversion costs) Units started in March Units transterred to Finishing Department in March Work in process, March 31 00% complete as to conversion costs) 66,000 632,000 662,000 36,000 Required: a. Compute the equivaient units for materials costs and for conversion costs using the weighted-average method Materials Conversion costs b. Compute the equvalent units for matenals costs and for conversion costs using the FIFO method Materials Conversion costs c. The company presioent has tbeen under conseabin pressure to increase incoe elils the controser bo change the essated competion for endng work in process to o percent (ho c-1. What effect wit this change nave on the un costs of units transterned to is goosin Mch " The change will reduce the utit cost fothe units transferred to finished goods o percen C) The change wil increase te uit (ost the un transferred to fristed goods o-2. Would ths be ethica? Yes c-3. is this likely to be a successtul strategy for amecting noome over a ong penod of time? No
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