Standard-costing method, assigning costs. Bucky’s Boxes makes boxes for moving. It sells its boxes to major national moving companies. Because of the simple nature of the production process, Bucky’s uses standard costing. The following information for July 2010 is available.

REQUIRED 1. Compute equivalent units for each cost category. »
2. Summarize total costs to account for, and assign total costs to units completed and transferred out and to units in ending work in process.LO1

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Physical Direct Conversion Units Materials Costs Standard cost per equivalent unit $ 1.30 $ 2.10 Work in process, beginning inventory (July 1) 185,000 $240,500 $ 97,125 Degree of completion of beginning work in process 100% 25% Started during July 465,000 Completed and transferred out 512,000 Work in process, ending inventory (July 31) 138,000 Degree of completion of ending work in process 100% 80% Actual total costs added during July $607,500 $1,207,415