Problem 3. A company uses the FIFO method to account for its work in process inventories. The accounting records show the following information: * uIt 1011owing information: Beginning work in process...

Extracted text: Problem 3. A company uses the FIFO method to account for its work in process inventories. The accounting records show the following information: * uIt 1011owing information: Beginning work in process inventory Materials Conversion costs Debits to work in process inventory this period: P 360 180 Materials Conversion costs P 3,714 2,258 Units: Beginning inventory Percent of completion (materials, 60%, conversion cost, 30%) Started this period Ending inventory Percent of completion:(materials, 40%, conversion cost, 20%) 300 units 2,000 units 600 units Requirements: 1. Compute the equivalent units for materials and conversion costs. 2. Compute the unit cost for materials and conversion costs. • 3. Compute the cost of goods transferred out. 4. Compute the cost of the ending inventory.