FIFO method of process costing, equivalent units. Consider the following data for the Assembly Division of Fenton Watches, Inc.: Physical Units Direct Conversion $($Watches$)$ Materials Costs Beginning work in process $($May $1)80493,360$ Started in May $200960091,040500$ Completed during May $2009460$ Ending work in process $($May $31)$b $220$ vag Total costs added during May $20093,220,0001,392,000$ Degree of completion: direct materials, $90\%$; conversion costs, $40\%.$ Degree of completion: direct materials, $60\%$; conversion costs, $30\%.1-$ When cost accountants use Process Costing systems. $2.$ Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule. $3.$ Assign cost to a$)$ completed and transferred out units, and b$)$ Work in Process $($ending$).$