Answer:
a:Weighted Equivalent Units Materials 138,250 Conversion 124,250
b:FIFO Equivalent Cost Per unit Materials $ 21.5 Conversion $ 30.9
Explanation:
Pacific Ink
<u>Weighted Average Equivalent Units</u>
<u>Particulars Units %of Completion Equivalent Units</u>
Mat Conversion Mat. Conversion
Transferred Out 112000 100 100 112000 112000
<u>Add Ending Inv 35000 75 35 26250 12250</u>
<u>Equivalent Units 138,250 124,250</u>
<u><em>The FIFO method accounts only for the current period costs and units.</em></u>
Pacific Ink
<u>FIFO Equivalent Units</u>
<u>Particulars Units %of Completion Equivalent Units</u>
Mat Conversion Mat. Conversion
Transferred Out 112000 100 100 112000 112000
Add Ending Inv 35000 75 35 26250 12250
Less
<u>Beg. Inv 53000 25 25 13250 13250</u>
<u>Equivalent Units 125,000 111000</u>
<u></u>
<u>FIFO Costs :</u>
Materials Conversion
<u>Current Costs</u>: $2,687,500 $3,429,900
FIFO Equivalent Units 125,000 111000
Cost per Unit $2,687,500/125000 $3,429,900/111000
<u>Equivalent Cost Per unit $ 21.5 $ 30.9</u>