Pacioli Pasta uses a process costing system. All material is added at the start of the production process. Direct labour and overhead are added at the same rate throughout the process. Pacioli’s records indicate the following production for March:

Beginning inventory (70% complete as to conversion)

12,000 units

Started during March

17,000 units

Completed during March

26,000 units

Ending inventory for March is 20 per cent complete as to conversion.

a.Compute the equivalent units of production (EUP) for direct material and conversion costs using weighted average process costing. (5 Marks)

b.Compute the EUP for direct material and conversion costs using FIFO process costing. (5 Marks)

c.Reconcile the calculations in parts a. and b. (5 Marks)

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