Weatherly Lumber Company processes wood pulp for manufacturing various paper products. The company employs a process costing system for its manufacturing operations. All direct materials are added at the beginning of the process, and conversion costs are incurred uniformly throughout the process. This is the company's production schedule for May: Work-in-Process Inventory, May 1 Started during May Units to account for Tons of Pulp Percent Completed Materials Conversion 4,000 100 % 50 % 14,000 18,000 Units from beginning Work-in-Process, which were completed and transferred out during May 4,000 Started and completed during May 8,400 5,600 18,000 100 % 50 % Work-in-Process Inventory, May 31 Total units accounted for The following cost data are available: Work-in-Process Inventory, May 1 Direct materials Conversion Costs incurred during May Direct materials Conversion $ 54,460 171,632 218,960 264,000 Part 1: Calculate the equivalent units of direct materials and conversion during May. Use the FIFO method: FIFO Equivalent Units Physical Completion Units Percentage Direct Materials Conversion Beginning WIP 4,000 10000% Direct materials Conversion (14,000) 5000% x (50) Units started 14,000 Total to account for 18,000 Units finished Ending WIP Direct materials Conversion Total accounted for Total equivalent units * Part 2: Calculate the cost per equivalent unit for both direct materials and conversion during May. Use the FIFO method: Determine Total Costs Total Current costs FIFO cost per EU Direct Materials Conversion