FIFO Method, Valuation of Goods Transferred Out and Ending Work in Process McCourt Company uses the FIFO method to account for the costs of production. For the first processing department, the following equivalent units schedule has been prepared: Conversion Direct Materials Costs 25,000 25,000 Units started and completed Units, beginning work in process:" 5,000 x 0% 5,000 x 40% 2,000 Units, ending work in process: 3,000 x 100% 3,000 3,000 x 75% 2,250 Equivalent units of output 28,000 29,250 The cost per equivalent unit for the period was as follows: Direct materials $3.00 Conversion costs 6.00 Total $9.00