Exercise 8-22 (Algo) Compute Equivalent Units (LO 8-1, 3, 5)

Magic Company adds materials at the beginning of the process in Department A. The following information on physical units for Department A for the month of August is available.

Work in process, August 1 (61% complete with respect to conversion)	16,400
Started in August	119,900
Completed	119,900
Work in process, August 31 (73% complete with respect to conversion)	16,400

Required:

a. Compute the equivalent units for materials costs and for conversion costs using the weighted-average method.

b. Compute the equivalent units for materials costs and for conversion costs using the FIFO method.