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

Work$-$in$-$Process

Beginning balance December $350$ units,

$20\%$ complete for conversion $ $43,750$ Completed $950$ units and transferred

to finished goods inventory $ $210,656$

Direct materials $94,500$

Direct labor $59,500$

Factory overhead

Property taxes $9,000$

Depreciation $39,500$

Utilities $21,000$

Indirect labor $7,000$

Ending balance December $31,450$ units, $40\%$ complete $63,594$

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 $$34,647$ of direct materials and $$9,103$ of conversion costs.

multiple choice

Weighted$-$average method

FIFO method