Equivalent Units; Weighted-Average and FIFO Unit Cost Pablo Company calculates the cost for an equivalent unit of production using process costing. Data for June Work-in-process inventory, June 1: 30,000 units Direct materials: 100% complete Conversion: 40% complete Balance in work-in-process, June 1 Units started during June Units completed and transferred out Work-in-process inventory, June 30 Direct materials: 100% complete Conversion: 80% complete Cost incurred during June Direct materials Conversion costs Direct labor Applied overhead Total conversion costs $ 60,000 24,000 $ 84,000 70,000 70,000 30,000 $120,000 120,000 180,000 $300,000

Required

1. Compute cost per equivalent unit for both the weighted-average and FIFO methods.

2. Explain the difference between the FIFO and weighted-average unit costs.