The assembly division of Marzollo Time Pieces, 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.

Physical Units Direct Conversion (Watches) Materials Costs Beginning work in process (May 1) 100 $549,300 S71,250 Started in May 2017 487 Completed during May 2017 467 Ending work in process (May 31) 120 Total costs added during May 2017 $3,460,200 $1,782,200 Degree of completion: direct materials. 95%; conversion costs, 40%. Degree of completion: direct materials, 55%; conversion costs, 35%