Standard-costing method, assigning costs. Bucky’s Boxes makes boxes for moving. It sells its boxes to Home Depot U-Haul, and major national moving companies. Because of the simple nature of the production process, Bucky uses standard costing. The following information for July 2010 is available.

1. Compute equivalent units for each cost category.

2. Summarize total costs to account for and assign total costs to units completed and transferred a and out and to units in ending work in process.

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Bucky's Boxes Company Standard Costing For the Month Ended July 31, 2010 Physical Units Direct Conversion Costs $2.10 Materials Standard cost per equivalent unit Work in process, beginning inventory (July 1) Degree of completion of beginning work in process Started during July Completed and transferred out Work in process, ending inventory (July 31) $1.30 $240,500 $97,125 185,000 100% 25% 465,000 512,000 138,000 Degree of completion of ending work in process Actual total costs added during July 100% 80% $607,500 $1,207,415