The assembly division of Marzollo Time Pieces, Inc. uses the weighted-average 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 first, then calculate the equivalent units.

Physical Units Direct Conversion (Watches) Materials Costs 75 520 470 125 $432,500 $71,250 Beginning work in process (May 1) Started in May 2014 Completed during May 2014 Ending work in process (May 31) Total costs added during May 2014 Degree of completion: direct materials, 90%, conversion costs, 40% b Degree of completion: direct materials, 64%, conversion costs, 32%. $3,225,000 $1,395,000