Determine equivalent units for DM and conversion costs using FIFO and weighted-average. E11.2 (LO 3), AP The machining department of Mathias Manufacturing had a busy year! Management evaluated the stage of completion of ending WIP Inventory and recorded the following in Step 1 of its process costing analysis. AutoSave O off) X I X V fx A B C D A Step 1: Verify physical units in the period and identify degree of completion 2 Physical Units Degree of Completion W DM Conversion Costs A Units in beginning WIP Inventory 3,100 100% 70% UT Units started this period 245,500 Total units to account for 248,600 7 8 Units completed and removed from WIP Inventory this period 239,800 9 Units in ending WIP Inventory 8,800 0% 40% 10 Total units accounted for 248,600 Sheet1 Mathias adds its conversion costs evenly throughout the machining process. Required a. Determine the equivalent units of production for both DM and conversion costs this year for the Mathias machining department under the FIFO method. b. According to the completion percentages in part (a), does Mathias add DM costs in the machining department closer to the beginning, the middle, or the end of the process? How do you know? c. If Mathias instead wanted to use the weighted-average method of process costing, which components of the Step 1 template above would managers completely disregard? Why? d. Determine the equivalent units of production for both DM and conversion costs this year for the Mathias machining department under the weighted-average method. e. Explain why your equivalent unit totals from parts (a) and (d) are the same or different.- X A B D E F Step 1: Verify physical units in the period and identify degree of completion Degree of Completion Physical Units DM Conversion Costs 4 Units in beginning WIP Inventory 1,000 100% 60% 5 Units started this period 4 000 6 Total units to account for 5,000 8 Units completed and removed from WIP Inventory this period 4,500 9 Units in ending WIP Inventory 500 100% 20% 10 Total units accounted for 5,000 11 Step 2: Determine physical status of units and convert into equivalent units 12 Equivalent Units 13 DM Physical Units Conversion Costs 9% Added Equiv. % Added Equiv. 14 This Period Units This Period Units 15 Units in beginning WIP Inventory completed this period 1,000 096 40% 400 16 Units started and completed this period 3,500 100% 3.500 100% 3,500 17 Units in ending WIP Inventory 500 1009% 500 20% 100 18 Total units accounted for 5,000 19 Total equivalent units of work done this period 4,000 4,000 20 Step 3: Account for costs 21 Total Costs DM Conversion Costs 22 Costs in beginning WIP Inventory (from last period) $1,320 $ 580 $ 740 23 Costs added to WIP Inventory this period 4.400 1,920 2,480 24 Total costs to account for $5,720 $2,500 $3,220 25 Step 4: Calculate cost per equivalent unit 26 DM Conversion Costs 27 Costs added to WIP Inventory this period (1) $1,920 $2,480 28 Total equivalent units of work done this period (2) 4,000 4,000 29 Cost per equivalent unit [(1) + (2)] $0.4800 $0.6200