Holly Company has the following information for December $1$ to December $31.$ All direct materials are $100\%$ complete.

Work$-$in$-$Process

Beginning balance December $270$ units,

$20\%$ complete for conversion $ $33,750$ Completed $870$ units and transferred

to finished goods inventory $ $175,002$

Direct materials $72,900$

Direct labor $45,900$

Factory overhead

Property taxes $7,400$

Depreciation $35,500$

Utilities $19,400$

Indirect labor $5,400$

Ending balance December $31,370$ units, $40\%$ complete $45,248$

Required:

$1.$ Calculate equivalent units using the weighted$-$average and FIFO methods.

$2.$ Use the given information to determine whether Holly Company is using the FIFO or weighted$-$average method. The beginning balance of Work$-$in$-$Process $($WIP$)$ consists of $$27,375$ of direct materials and $$6,375$ of conversion costs.

multiple choice

Weighted$-$average method

FIFO method