Q4, ch 18

The assembly division of Gannett Watches, Inc. uses the FIFO method of process costing. Consider the following data for May 2020: (Click the icon to view the data.) (Click the icon to view the equivalent unit computation.) Requirement Summarize total costs to account for, calculate cost per equivalent unit for direct materials and conversion costs, and assign costs to units completed (and transferred out) and to units in ending work-in-process inventory. Begin by summarizing total costs to account for. Total Direct Conversion Production Costs Materials Costs Total costs to account for Physical Units Direct Conversion (Watches) Materials Costs Beginning work in process (May 1) 80 $432,500 $114,350 Started in May 2020 540 Completed during May 2020 470 Ending work in process (May 31) 150 Total costs added during May 2020 $3,635,200 $1,235,000 Degree of completion direct materials, 75%; conversion costs, 30%. Degree of completion: direct materials, 68%; conversion costs, 32%. Print Done Equivalent Units Direct Conversion Materials Costs 56 Flow of Production Completed and transferred out during current period: From beginning work in process Started and completed Work in process, ending Equivalent units of work done in current period 20 390 390 102 48 512 494