Answer:
Pharma Company
1. Weighted Average method:
Weighted Average Method:
Equivalent units of production:
Started and completed this period 55,000
Ending WIP                                        10,000
Total equivalent unit produced =   65,000
Total cost of production:
Beginning WIP =  $150,000
Current period     600,000
Total cost =        $750,000
Cost per equivalent unit = $11.54 ($750,000/65,000)
Cost assigned to:
Units completed = 55,000 * $11.5385 = $634,617
Ending WIP =         10,000 * $11.5385 =     115,385
Total cost of production =                     $750,002
Cost Reconciliation:
Beginning WIP = $150,000
Completed units  600,000
Total costs =      $750,000
Ending WIP =         115,385
Cost assigned to 
   production        634,617
2. FIFO method:
Explanation:
a) Data and Calculations:
                                    Units    Completion %         Cost
Beginning WIP =       5,000       2,000 (40%)     $150,000
Current completion (WIP)         3,000 (60%)
Completed            55,000     55,000 (100%)     600,000
Ending WIP           20,000      10,000 (50%)
Weighted Average Method:
Equivalent units of production:
Beginning WIP                                     3,000
Started and completed this period 55,000
Ending WIP                                        10,000
Total equivalent unit produced =   68,000
Total cost of production:
Current period     600,000
Cost per equivalent unit = $8.82 ($600,000/68,000)
Cost assigned to:
Beginning WIP =  
Units completed
Beginning WIP =          $150,000
=    3,000 * $8.82 =       $26,460
 = 55,000 * $8.82 =       485,100
Ending WIP:
= 10,000 * $8.82 =         88,200
Total cost of production = $749,760
Cost Reconciliation:
Beginning WIP (40%) = $150,000
WIP completed (60%)      26,460
Completed units            485,100
Ending WIP =                   88,200
Total cost =                 $749,760