Assume a company uses the FIFO method in its process costing. Its Work in Process I-account for the Refining Department for August is: August 1 balance ? Materials Direct labor Overhead August 31 balance Work in Process: Refining Department 62,000 Completed and transferred to Finished Goods 310,000 72,000 181,000 ? The August 1 work in process inventory consisted of 6,000 units with $40,000 in materials cost and $22,000 in conversion cost. The August 1 work in process inventory was 100% complete with respect to materials and 40% complete with respect to conversion. During August 48,000 units were started into production. The August 31 work in process inventory consisted of 8,000 units that were 100% with respect to materials and 60% complete with respect to conversion. How many units were started and completed in the Refining Department during the month of August? Which of the following statements is true with respect to the direct and step-down methods of cost allocation? Multiple Choice The step-down method assigns more total costs from all of the service departments to the operating departments than the direct method. The step-down and direct methods assign the same total costs from all of the service departments to the operating departments. The total costs assigned from all service departments to the operating departments using the step-down method may be more or less than the total costs assigned using the direct method depending on the chosen allocation bases The step-down method assigns less total costs from all of the service departments to the operating departments than the direct method. Assume the following information: Units 200 6,200 Percent Complete Materials Conversion 20% 30% Milling Department Beginning work in process inventory Units started into production during March Units completed during the period and transferred to the next department Ending work in process inventory 5,800 600 100% 30% 100% 60% Milling Department Cost of beginning work in process inventory Costs added during the period Total cost Materials $ 10,000 290,000 $300,000 Conversion $ 15,000 384,000 $399,000 Using the FIFO method, what is the equivalent units of production for materials