The assembly division of Canterbury Watches, Inc. uses the FIFO method of process costing. Consider the following data for the month of May 2017:

Data

	Physical Units (Watches)	Direct Materials	Conversion Costs
Beginning work in process (May 1) a	100	$549,300	$71,250
Started in May 2017	487
Completed during May 2017	467
Ending work in process (May 31) b	120
Total costs added during May 2017		$3,460,200	$1,782,200
a. Degree of completion: direct materials, 95%, conversion costs, 40%
b. Degree of completion: direct materials, 55%, conversion costs, 35%

Equivalent unit computation

Flow of Production	Direct Materials	Conversion Costs
Completed and transferred out during current period:
From beginning work in process	5	60
Started and completed	367	367
Work in process, ending	66	42
Equivalent units of work done in current period	438	469

Reqirement

Summarize the total costs to account for, calculate the 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.

Begin by summarizing the total costs to account for.

		Total	Direct	Conversion
		Production Costs	Materials	Costs
Work in process, beginning
Costs added in current period
Total costs to account for

Next, calculate cost per equivalent unit for direct materials and conversion costs.

		Direct	Conversion
		Materials	Costs
Costs added in current period
Divide by	equivalent units of work done in current period
Cost per equivalent unit

Finally, assign total costs to units completed (and transferred out) and to units in ending work in process (WIP). Begin by calculating the total from beginning inventory, then calculate the total costs accounted for.

		Total	Direct	Conversion
		Production Costs	Materials	Costs
Completed and transferred out:
Work in process, beginning
Costs added to beginning WIP 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