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Pitt Enterprises manufactures jeans. All materials are introduced at the beginning of the manufacturing process in the Cutting department. Conversion costs are incurred uniformly throughout the manufacturing process. As the cutting of material is completed, the pieces are immediately transferred to the Sewing department. Information for the Cutting department for the month of May follows.

	Units	Direct materials Percent Complete	Conversion Percent Complete
Beginning work in process inventory	42,000	100%	80%
Units started this period	110,000
Units completed and transferred out	119,000
Ending work in process inventory	33,000	100%	70%

Production cost information for the Cutting department follows:

Beginning work in process
Direct materials	$ 71,200
Conversion	34,370	$ 105,570
Costs added this period
Direct materials	$ 342,700
Conversion	353,650	$ 696,350

If Pitt Enterprises uses the FIFO method of process costing, compute the equivalent units for direct materials and conversion respectively for May.

Multiple Choice

110,000 direct materials; 108,500 conversion.

152,000 direct materials; 142,100 conversion.

77,000 direct materials; 77,000 conversion.

108,500 direct materials; 110,000 conversion.

108,500 direct materials; 108,500 conversion.