CHAPTER 17 PROCESS COSTING 17-21 (15 min.) FIFO method, equivalent units. Under the FIFO method, equivalent units are calculated as the equivalent units of work done in the current period only. Solution Exhibit 17-21 shows equivalent units of work done in May 2007 in the Satellite Assembly Division of Aerospatiale for direct materials and conversion costs. SOLUTION EXHIBIT 17-21 Steps 1 and 2: Summarize Output in Physical Units and Compute Output in Equivalent Units; FIFO Method of Process Costing, Satellite Assembly Division of Aerospatiale for May 2007. (Step 1) (Step 2) Equivalent Units Flow of Production Physical Units Direct Materials Conversion Costs Work in process, beginning (given) Started during current period (given) To account for
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