=+5-34 KK Weighted-average method, assigning costs OBJECTIVES 8, 9 Bio Doc is a biotech company based in Kuala Lumpur. 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 weightedaverage method of process costing. The following information for July 2014 is available:

Equivalent units Physical units Direct materials Conversion costs Work in process, 1 July 12 500a 12 500 8 750 Started during July 50 000 Completed and transferred out during July 42 500 42 500 42 500 Work in process, 31 July 20 000b 20 000 10 000 a

Degree of completion: direct materials, 100%; conversion costs, 70%.

b Degree of completion: direct materials, 100%; conversion costs, 50%.

Total costs for July 2014 Work in process, beginning Direct materials $75 000 Conversion costs 87 500 $162 500 Direct materials added during July 350 000 Conversion costs added during July 463 750 Total costs to account for $976 250 Required 1 Calculate cost per equivalent unit for direct materials and conversion costs.