Holly Company has the following information for December 1 to December 31. All direct materials are 100% complete. Work-in-Process Completed 860 units and transferred to finished $32,500 goods inventory 70,200 44,200 $141,040 Beginning balance December 260 units, 20% complete for conversion Direct materials Direct labor Factory overhead Property taxes Depreciation Utilities Indirect labor Ending balance December 31, 360 units, 408 complete 7,200 35,000 19,200 5,200 37,080 Required: 1. Calculate equivalent units using the weighted average and FIFO methods. Equivalent Units Weighted Average FIFO Direct materials Conversion 2. Use the given information to determine whether Holly Company is using the FIFO or weighted average method. The beginning balance of WIP consists of $26,946 of direct materials and $5,554 of conversion costs. Weighted average method FIFO method