The assembly division of Cranberry Watches, Inc. uses the FIFO method of process costing. Consider the following data for May 2020: (Click the icon to view the data.) Requirement (Click the icon to view the equivalent unit computation.) 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 Next, calculate cost per equivalent unit for direct materials and conversion costs. Direct Materials Conversion Costs Divide by Cost per equivalent unit Data table Beginning work in process (May 1) Started in May 2020 Completed during May 2020 Physical Units (Watches) 100 Direct Materials $738,600 Conversion Costs $71,250 525 480 145 Ending work in process (May 31)b Total costs added during May 2020 $3,423,700 $1,625,600 *Degree of completion: direct materials, 85%; conversion costs, 30%. bDegree of completion: direct materials, 80%; conversion costs, 40%. Print Done Finally, assign total costs to units completed (and transferred out) and to units in ending work in process (WIP) inventory. Begin by calculating the total from beginning inventory, then calculate the total costs accounted for. Completed and transferred out: Total from beginning inventory Total costs of units completed and transferred out Total costs accounted for Total Direct Conversion Production Costs Materials Costs Reference Direct Equivalent Units Conversion Flow of Production Materials Costs Completed and transferred out during current period: From beginning work in process 15 70 Started and completed 380 380 116 58 Work in process, ending 511 508 Equivalent units of work done in current period Print Done