Question 1

The Metal Works Company manufactures a product that goes through two departments prior to completion. The following information is available on work in one of these departments, the Forming Department, during March:

Cost in the beginning work-in-process inventory and cost added during the month were as follows:

The Forming Department is the first department in the production process; after forming has been completed, the units are transferred to the Finishing Department.

Required:

a) Assuming the company uses the weighted-average method, calculate the equivalent units and unit cost for materials and conversion costs, rounded to the nearest tenth of a cent. Show your work.

b) (Appendix 6A) Assuming the company uses the FIFO method, calculate the equivalent units and unit cost for materials and conversion costs, rounded to the nearest tenth of a cent.Show you work.