Refer to the information in Exercise 17-19. Suppose the Assembly Division uses the standard-costing method of process costing. Suppose further that the Assembly Division determines standard costs of $700,000 per equivalent unit for direct materials and $300,000 per equivalent unit for conversion costs for both beginning work in process and work done in the current period.
REQUIRED
1. Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule.
2. Summarize total costs to account for, and assign these costs to units completed and transferred out, and to units in ending work in process.
3. Compute the total direct material and conversion cost variances for May 2012.