Equivalent Production: FIFO Costing Method

Eco Savers Corporation produces wood pulp that is used in making paper. The data that follow pertain to the companys production of pulp during September.

		Percentage Complete
		Tons		Direct Materials		Conversion Costs
Work in process, Aug. 31		50,000		100%		60%
Placed into production		250,000
Work in process, Sept. 30		80,000		100%		40%

Compute the equivalent units of production for direct materials and conversion costs for September using the FIFO costing method.

	Equivalent Units
Direct Materials
Conversion Costs