Consider the following data for the assembly division of Cranberry Watches, Inc., The assembly division uses the weighted- average method of process costing.

aDegree of completion: direct materials, 80%; conversion costs, 35%.
bDegree of completion: direct materials, 80%; conversion costs, 80%.

Required
1. Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule.
2. What issues should the manager focus on when reviewing the equivalent unitscalculation?

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Physical Units (Watches) 100 510 450 160 Direct Materals Conversion C 141,600 $547,100 Beginning work in process (May 1 Started in May 2013 Completed during May 2013 Ending work in process (May 31) Total costs added during May 2013 $3,585,600 $1,748,460