Weighted$-$average method, equivalent units. Consider the following data for the Assembly Division of Fenton Watches, Inc.: The Assembly Division uses the weighted$-$average method of process costing.

Physical Units

Direct

Conversion

$($Watches$)$

Materials

Costs

Beginning work in process $($May $1)\backslash$deg

$80$

$ $493,360$

Started in May $2009$

$600$

$

$91,040$

$500$

Completed during May $2009$

$460$

Ending work in process $($May $31)$b

$220$ vag

Total costs added during May $2009$

$$3,220,000$

$$1,392,000$

$$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$).$