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: 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 31 20,000 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 $951,250 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 (and transferred out) and to units in ending work in process. Check Figure: 1. Equivalent units of conversion costs, 52,500