18-16 Weighted average method, assigning costs. Bio Doc Corporation is a biotech company that 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 is available: 20,000 Equivalent Units Physical Direct Conversion Units Materials Costs Work in process, July 1" 12,500 12,500 8.750 Started during July 50,000 Completed and transferred out during July 42,500 42,500 42,500 Work in process, July 311 20,000 10,000 Degree of completion direct materials, 100%; conversion costs, 70%. Degree of completion direct materials, 100%; conversion costs, 50% Total Costs for July Work in process, beginning Direct materials $75,000 Conversion costs 87,500 $162,500 Direct materials added during July 325,000 Conversion costs added during July 463,750 Total costs to account for S951,250 Required 1. Calculate the cost per equivalent unit for direct materials and conversion costs 2. summarize total costs to account for, and assign total costs to units completed fand transferred out) and to units in ending work in process. Check Figure: 1. Equivalent units of conversion costs, 52,500. 18-17 FIFO method, assigning costs. Refer to the information in Exercise 18-16. (L04) Required Do Exercise 18-16 using the FIFO method. Note that you first need to calculate the equivalent units of work done in the current period (for direct materials and conversion costs to complete beginning work-in-process, to start and complete new units, and to produce ending work-in-process Check Figure: 1. Direct materials cost per equivalent unit,$6.50