CHAPTER 17 17-24 Weighted-average method, assigning costs. The Chatham Company makes a water-treatment chemical in a single processing department. Direct materials are added at the start of the process. Conversion costs are added evenly during the process. Chatham uses the weighted-average method of process costing. The following information for July 2004 is available. Equivalent Units Physical Units Direct Materials Conversion Costs Work in process, July 1 10,000 10,000 7,000 Started during July 40.000 Completed and transferred out during July 34,000 34,000 34,000 Work in process, July 31 16,000 16,000 8.000 "Degree of completion: direct materials, 100%; conversion costs, 70% "Degree of completion direct materials, 100% conversion costs, 50% Total Costs for July 2004 Work in process, beginning Direct materials Conversion costs $60,000 70,000 $130,000 Direct materials added during July 280,000 Conversion costs added during July 371,000 Total costs to account for $781.000 Required 1. Calculate cost per equivalent unit for direct materials and conversion costs. 2. Summarize total costs to account for, and assign these costs to units completed (and transferred out) and to units in ending work in process.