Pattern Corporation Uses the FIFO Method in Its Process Costing

Essay

Pattern Corporation uses the FIFO method in its process costing. The following data pertain to its Cutting Department for August.
$$\begin{array} { l c c c } & { \text { Percent Complete } } \\&\text { Units } & \text { Materials } & \text { Conversion } \\\text { Work-in-process, August 1 } & 500 & 50 \% & 45 \% \\\text { Units started into production during August } & 8,100 & & \\\text { Units cornpleted during August and transferred to } & & & \\\text { the next departrnent } & 7,200 & & \\\text { Work-in-process, August 31 } & 1,400 & 75 \% & 30 \%\end{array}$$
Required:
Compute the equivalent units of production for both materials and conversion costs for the Cutting Department for August using the FIFO method.