Barney Corporation adds materials at the beginning of the process in department AX. The conversion costs were 75% complete as to the 20,000 units in WIP on April 30 and 50% complete as to the 15,000 units in WIP on May 31. During May 55,000 units were completed and transferred to the next department. An analysis of the costs relating to WIP at May 1 and to production activity for May is as follows

Direct materials Conversion

WIP,MAY 1 16,600 14,800

COSTS ADDED IN MAY 75,700 33,300

Required

A) Prepare Department AX'S COST OF THE PRODUTION REPORT FOR MAY ASSUMING FIFO WAS USED. UNDER FIFO, WHAT IS THE COST PER EQUIVALENT UNIT WITH RESPECT TO DIRECT MATERIALS? WHAT IS THE COST PER EQUIVALENT UNIT WITH RESPECTTO CONVERSION COSTS?

B) REPEAT PART A) BUT USING THE WEIGHTED AVERAGE INVENTORY SYSTEM INSTEAD.

Inputs outputs

Beginning add current Equals total subtract completed +ending WIP total

cutting inventory Month production transfer out inventory outputs

Units Calculations

Direct materials Whole units

% equivalent

Direct materials equivalent units