The Electric-SW company assembles electronic cards of the ships from its plant in TATOOINE

to supply the final production of the Rebel Alliance ships.

Electric-SW has only one direct cost category (direct materials) and only one indirect cost category (conversion costs). 75% of the cost of direct materials is placed at the beginning of the process, and the remaining 25% is placed just after 90% of the production process. Conversion costs are added evenly throughout the process. When the assembly department finishes the work on each card, it is immediately transferred to the testing department, for the battles of the Rebellion nothing can go wrong.

To facilitate the analysis, the time of a terrestrial month will be assumed. The assembly department data for the month of analysis are:

	Physical units	Direct materials	Conversion
Products in process, 1st of the month *	100	$990 000	$750 000
Started in the month	300
Products in process, last of the month **	50
Total costs added during this month		$2 575 000	$2 010 000

* Degree of advancement Direct materials 75% and Conversion 75%

** Degree of advancement Direct materials 75% and Conversion 50%

1. Using the weighted average method, calculate:

1.1 Direct Materials Equivalent Units

1.2 Equivalent Units Conversion Costs.

1.3 Completed and Transferred Inventory Costs

1.4 Final Inventory Costs of products in process

2. Using the FIFO method calculate:

2.1 Direct Materials Equivalent Units

2.2 Equivalent Units Conversion Costs.

2.3 Inventory Costs Completed and Transferred

2.4 Final Inventory Costs of products in process

3. With which of the 2 means is the value of the inventory completed and transferred greater? Select one: a. Weighted Average b. FIFO

4. Electric-SW wants to understand which month was more expensive, if the previous month or the month that just ended

4.1 What is the cost per Equivalent Unit of the conversion cost of the product in process of the previous month.

4.2 Which month was more expensive, buying from the cost per Unit Equivalent to the Cost of conversion of the product in process