Complete the Steps Step 1. Summarize the physical flow of units and compute the equivalent units for direct materials, direct labor, and overhead. Step 2. Summarize the costs to be accounted for (separated into direct materials, direct labor, and overhead). Step 3. Calculate the cost per equivalent unit. Step 4. Use the cost per equivalent unit to assign costs to (1) completed units transferred out and (2) units in ending WIP inventory Problem 1 - Assembly Department-Month of May The company had 3.000 units in beginning WIP inventory, all were completed and transferred out during May. During May 6,000 units were started. Of the 6,000 units started: 1.000 units were completed and transferred out to the Finishing department (100 percent complete with respect to direct materials. direct labor, and overhead), thus 1.000 units werestarted and completed during May. 5,000 units were partially completed and remained in ending WIP inventory on May 31 (60 percent complete for direct materials, percent complete for direct labor, and 30 percent complete for overhead which is applied based on direct labor hours) Costs in beginning WIP inventory totaled $161,000 ($95.000 in direct materials + 540.000 in direct labor - $26.000 in overhead). Costs incurred during May totaled $225.000 - $115.000 in direct materials 570.000 in direct labor+ $40.000 in avohad 30