Weighted-average method, assigning costs. Bio Doc Corporation is a biotech company based in Milpitas. It makes a cancer-treatment drug in a single processing department. Direct materials are added at the start of the process. Conversion costs are added evenly during the process. Bio Doc uses the weighted- average method of process costing. The following information for July 2008 is available.

1. Calculate cost per equivalent unit for direct materials and conversion costs.

2. Summarize total costs to account for, and assign total costs to units completed (and transferred out) and to units in ending work inprocess.

Equivalent Units Physical Units Direct Materials Conversion Costs 12,500 12,500 Work in process, July 1 Started during July Completed and transferred out during July Work in process, July 31 8,750 50,000 42,500 42,500 42,500 20,000 20,000 10,000 "Degree of completion: direct materiais, 100%; conversion costs, 70%. Degree of completion: direct materials, 100%; conversion costs, 50%. Total Costs for July 2008 Work in process, beginning Direct materials $75,000 Conversian costs $162,500 87,500 Direct materials added during July Conversian costs added during July 350,000 463,750 $976,250 Total costs to account for