Beginning work in process (May 1) a Started in May 2020 Completed during May 2020 Ending work in process (May 31) b Total costs added during May 2020 Physical Units Direct Conversion (Watches) Materials Costs 95 $521,450 $114,350 490 455 130 $3,205,000 a Degree of completion: direct materials, 80%; conversion costs, 35%. b Degree of completion: direct materials, 70%; conversion costs, 30%. $1,380,000 Begin by summarizing total costs to account for. Total Direct Production Costs Materials Conversion Costs Total costs to account for Next, calculate cost per equivalent unit for direct materials and conversion costs. Divide by Direct Materials Conversion Costs Cost per equivalent unit Finally, assign total costs to units completed (and transferred out) and to units in ending work-in-process inventory. Conversion Total Direct Production Costs Materials Costs Completed and transferred out Work in process, ending Total costs accounted for