International Brass, Inc, manufacturers a specialty brass hardware item that it sells to companies that use it as an attachment for the garden hoses they manufacture. During the most recent month, there were 1,500,000 units in opening inventory. The units in opening inventory was 100 percent complete with respect to direct material, and 45 percent complete with respect to conversion costs. During the month 6,550,000 units were entered into production and 7,000,000 were completed. The units in ending inventory were 100% complete with respect to material costs and 90% complete with respect to conversion costs. The accounting records show that there were $3,000,000 of material costs and $750,000 of conversion costs in opening inventory, and in the current month, material costs of $11,250,000 and conversion costs of $5,955,000 were added. All units are inspected at 75% of completion. In a typical month, 5% of the output is discarded as spoiled. During the current month, there was an unexpected 200,000 spoilage because of inexperienced employees/ Required: Using the FIFO method of accounting. a) Compute the equivalent units for direct material and conversion Your Answer: b) Compute the equivalent unit costs for direct material and conversion Your Answer: c) Compute the value of ending work in process Your Answer: d) Compute the value of good items transferred out Your Answer: 5 International Brass, Inc, manufacturers a specialty brass hardware item that it sells to companies that use it as an attachment for the garden hoses they manufacture. During the most recent month, there were 1,500,000 units in opening inventory. The units in opening inventory was 100 percent complete with respect to direct material, and 45 percent complete with respect to conversion costs. During the month 6,550,000 units were entered into production and 7,000,000 were completed. The units in ending inventory were 100% complete with respect to material costs and 90% complete with respect to conversion costs. The accounting records show that there were $3,000,000 of material costs and $750,000 of conversion costs in opening inventory, and in the current month, material costs of $11,250,000 and conversion costs of $5,955,000 were added. All units are inspected at 75% of completion. In a typical month, 5% of the output is discarded as spoiled. During the current month, there was an unexpected 200,000 spoilage because of inexperienced employees/ Required: Using the FIFO method of accounting. a) Compute the equivalent units for direct material and conversion Your Answer: b) Compute the equivalent unit costs for direct material and conversion Your Answer: c) Compute the value of ending work in process Your Answer: d) Compute the value of good items transferred out Your Answer: 5