Pearl Glaze adds direct materials at the beginning of its production process and adds conversion costs uniformly throughout the process. Given the following information from Pearl Glaze’s records for July and using Steps 1 and 2 of the FIFO costing method, compute the equivalent units of production. Units in beginning inventory 3,000 Units started during the period 17,000 Units partially completed in prior period 2,500 Percentage of completion of ending 100% for direct materials; work in process inventory 70% for conversion costs Percentage of completion of beginning 100% for direct materials; inventory in prior period 40% for conversion costs Direct Materials ? units Conversion Costs ? units
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