QualCo manufactures a single product in two departments: Cutting and Assembly. Information for the Cutting department for May follows.

1. Compute equivalent units of production for both direct materials and conversion.
2. Compute cost per equivalent unit of production for both direct materials and conversion.
3. Assign costs to the department’s output—specifically, to the units transferred out and to the units that remain in work in process at period-end.

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Direct Materials Conversion Beginning work in process Percent Complete Percent Complete Direct materials $ 74,250 Units Conversion.. 28,500 $ 102,750 Beginning work in process inventory... 37,500 60% 40% Costs added this period Units started and completed Units completed and transferred out... 150,000 Direct materials 505,035 187,500 Conversion.. 398,395 903,430 Ending work in process inventory.... 51,250 60% 20% Total costs to account for... $1,006,180