The assembly division of Marzollo Time Pieces, Inc., uses the FIFO method of process costing. Consider the following data for the month of May 2014:

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.

Begins like this

Physical Units Direct Conversion (Watches) Materials Costs 100 510 450 160 $464,000 $79,900 Beginning work in process (May 1)a Started in May 2014 Completed during May 2014 Ending work in process (May 31)b Total costs added during May 2014$3,237000 a Degree of completion: direct materials, 80%; conversion costs, 35% b Degree of completion: direct materials, 80%; conversion costs, 40%. $1,916,000