The Matsui Lubricants plant uses the FIFO method to account for its work-in-process inventories. The accounting records show the following information for a particular day.

Beginning WIP inventory
Direct materials	$	975
Conversion costs		542
Current period costs
Direct materials		23,520
Conversion costs		16,555

Quantity information is obtained from the manufacturing records and includes the following.

Beginning inventory	750	units	(60% complete as to materials, 56% complete as to conversion)
Current period units started	5,800	units
Ending inventory	2,000	units	(40% complete as to materials, 30% complete as to conversion)

Exercise 8-35 (Algo) Compute Costs per Equivalent Unit: FIFO Method (LO 8-5)

Required:

a. Compute the equivalent units for the materials and conversion cost calculations.

b. Compute the cost per equivalent unit for direct materials and for conversion costs using the FIFO method.

C. Compute the cost of goods transferred out and the ending inventory using the FIFO method.