4. Reference

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	Equivalent Units
	Direct	Conversion
Flow of Production	Materials	Costs
Completed and transferred out during current period:
From beginning work in process	12	45
Started and completed	383	383
Work in process, ending	38	19
Equivalent units of work done in current period	433	447

Data table

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	Physical Units	Direct	Conversion
	(Watches)	Materials	Costs

Beginning work in process (May1)a	60	$249,750	$114,350
Started in May 2017	478
Completed during May 2017	443
Ending work in process (May31)b	95
Total costs added during May 2017		$2,598,000	$1,251,600

aDegree

of completion: direct materials,

80%;

conversion costs,

25%.

bDegree

of completion: direct materials,

40%;

conversion costs,

20%.

The assembly division of

GannettWatches,

Inc. uses the FIFO method of process costing. Consider the following data for the month of May

2017:

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Requirement

Summarize the total costs to account for, calculate the cost per equivalent unit for direct materials and conversion costs, and assign costs to units completed (and transferred out) and to units in ending work in process.

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Part 1

Begin by summarizing the total costs to account for.

		Total	Direct	Conversion
		Production Costs	Materials	Costs
Total costs to account for