Envelope Company began operations this month mass-producing pull-and-seal envelopes. During the month of July, it completed 25,000 units and has 20,000 units that are 65% complete. It had product costs for the month of $200,000.

2. Calculate the equivalent units.
4. Assign costs to the various inventories.

Question 2

Pharma Company produces various medicines in capsule form. At the beginning of the month of February, it had 9,000 units that were 50% complete. These were assigned costs of $70,000. During the month, it completed 50,000 units and has 10,000 units that are 60% completed. It had production costs during the month of $900,000.

2. Complete all five steps of a production report using the weighted average method.
4. Complete all five steps of a production report using the FIFO method.