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The May 1 work in process inventory consisted of 54,000 pounds with $50,760 in materials cost and $27,000 in conversion cost. The May 1 work in process inventory was 100% complete with respect to materials and 80% complete with respect to conversion. During May, 377,000 pounds were started into production. The May 31 inventory consisted of 132,000 pounds that were 100% complete with respect to materials and 70% complete with respect to conversion. The company uses the weighted-average method to account for units and costs.
Required: Determine the equivalent units of production for May.
Discuss fully the accounting treatment and disclosures that should be accorded the casualty and related contingent losses in the financial statements dated December 31, 2003.
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