The assembly division of Marzollo Time Pieces$,$ ?Inc. uses the FIFO method of process costing. Consider the following data for May $2020$:

Requirement

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

Data table Beginning work in process (May 1) a Started in May 2020 Completed during May 2020 Ending work in process (May 31) b Total costs added during May 2020 Physical Units Direct Conversion (Watches) Materials Costs 80 $493,360 $71,250 500 460 120 $3,220,000 $1,392,000 a Degree of completion: direct materials, 90%; conversion costs, 40%. b Degree of completion: direct materials, 60%; conversion costs, 30%.