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Question - Howard Poster Incorporated had 12,000 units of work in process in Department A on October 1. These units were 60 percent complete as to conversion costs. Materials are added at the end of the process. During the month of October, 38,000 units were started and 40,000 units were completed. Howard had 10,000 units of work in process on October 31. These units were 75 percent complete as to conversion costs.
a) Compute the equivalent units for materials and conversion costs for the month of October using the FIFO method.
b) Using the average cost method, determine the equivalent units for materials and conversion costs for the month of October.
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