The assembly division of

Fenton WatchesFenton Watches,

Inc. uses the FIFO method of process costing. Consider the following data for the month of May2017:

	Physical Units	Direct	Conversion
	(Watches)	Materials	Costs

Beginning work in process left parenthesis May 1 right parenthesis Superscript a(May 1)a	100	$738,600	$64,500
Started in May 2017	525
Completed during May 2017	480
Ending work in process left parenthesis May 31 right parenthesis Superscript b(May 31)b	145
Total costs added during May 2017		$3,423,700	$1,625,600

Superscript aaDegree of completion: direct materials, 85%; conversion costs, 30%.

Superscript bbDegree of completion: direct materials, 80%; conversion costs, 40%

conversion costs,

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.

	Physical
Flow of Production	Units
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

Equivalent Units
Direct	Conversion
Materials	Costs