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

Requirement

Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule.

Enter the physical units in first, then calculate the equivalent units.

Conversion Costs $114,350 Physical Units Direct (Watches) Materials Beginning work in process (May 1) $521,450 Started in May 2017 485 Completed during May 2017 455 Ending work in process (May 31) Total costs added during May 2017 $3,832,000 Degree of completion direct materials, 65%; conversion costs, 35% Degree of completion direct materials, 70%, conversion costs, 40% $1,551,000 Physical Units Flow of Production Work in process, beginning Started during current period To account for Completed and transferred out during current period From beginning work in process Started and completed Work in process, ending Accounted for Equivalent unts of work done in current period Direct Materials Conversion Costs Flow of Production Physical Units 60 485 Work in process, beginning Started during current period To account for Completed and transferred out during current period: From beginning work in process Started and completed Work in process, ending Accounted for Equivalent unts of work done in current period