Refer to the information in Exercise 17-16.
Suppose Bio Doc determines standard costs of $6.60 per equivalent unit for direct materials and $10.40 per equivalent unit for conversion costs for both beginning work in process and work done in the current period.
In Exercise 17-16.

*Degree of completion: direct materials, 100%; conversion costs, 70%.
€ Degree of completion: direct materials, 100%; conversion costs, 50%.

REQUIRED
1. Do Exercise 17-16 using the standard-costing method. Note that you first need to calculate the equivalent units of work done in the current period (for direct materials and conversion costs) to complete beginning work in process, to start and complete new units, and to produce ending work in process.
2. Compute the total direct materials and conversion costs variances for July 2012.

Equivalent Units Physical Dect Conversion Units Materials Work in process, July 1 Started during July Completed and transferred out during July Work in process, July 31 Costs 8,750 42,500 4,500 12,500 50,000 12,500 42,500 0,000 20,000 10,000 Total Costs for July 2012 Work in process, beginning Direct materials Conversion costs Direct materials added during July Conversion costs added during July Total costs to account for $75,000 87500 S162,500 350,000 463,750 $976,250