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