Process Costing
FIFO method, assigning costs
The assembly division of Quality Time Pieces, Inc. uses the FIFO method of process costing. Consider the following data for the month of May 2017:
			Physical Units (Watches)	Direct Materials	Conversion Costs
		Beginning work in process (May 1) a	100	$459,888	$142,570
		Started in May 2017	510
		Completed during May 2017	450
		Ending work in process (May 31)b	160
		Total costs added during May 2017		$3,237,000	$1,916,000
		a Degree of completion:
		Direct materials	80%
		Conversion costs	35%
		b Degree of completion:
		Direct materials	80%
		Conversion costs	40%
			Equivalent Units
		Flow of Production	Direct Materials	Conversion Costs
		Completed and transferred out during current period
		From beginning work in process	20	65
		Started and completed	350	350
		Work in process, ending	128	64
		Equivalent units of work done in current period	498	479
Use the blue shaded areas on the ENTERANSWERS tab for inputs.
Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong.
	Total Production Costs	Direct Materials	Conversion Costs
Work in process, beginning
Costs added in current period
Total costs to account for
Costs added in current period
Divide by: equivalent units of work done in current period
Cost per equivalent unit of work done in current period
Assignment of costs:
Completed and transferred out:
Work in process, beginning
Costs added to beginning work in process in current period
Total from beginning inventory
Started and completed
Total costs of units completed and transferred out
Work in process, ending
Total costs accounted for

(Always use cell references and formulas where appropriate to receive full credit. If you copy/paste from the Instructions tab you will be marked wrong.) Total Production Costs Direct Materials Conversion Costs Work in process, beginning Costs added in current period Total costs to account for Costs added in current period Divide by: equivalent units of work done in current period Cost per equivalent unit of work done in current period Assignment of costs: Completed and transferred out: Work in process, beginning Costs added to beginning work in process in current period Total from beginning inventory Started and completed Total costs of units completed and transferred out Work in process, ending Total costs accounted for