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: (Click the icon to view the data.) (Click the icon to view the equivalent unit computation.) Equivalent Units Direct Conversion Materials Costs Flow of Production Physical Units Direct Conversion (Watches) Materials Costs Beginning work in process (May 1) 110 $543,000 $142,800 Started in May 2017 515 Completed during May 2017 465 Ending work in process (May 31) 160 Total costs added during May 2017 $3,690,000 $1,211,600 Degree of completion direct materials, 70% conversion costs 50% Degree of completion direct materials, 65% conversion costs, 35% 33 55 355 355 Completed and transferred out during current period From beginning work in process Started and completed Work in process, ending Equivalent units of work done in current period 104 56 492 466 Requirement Summarize the total costs account for calculate the cost per equivalent unit for direct materials and conversion costs, and assign costs to units completed (and transferred out) and to units in ending work in process Begin by summarizing the total costs to account for Total Direct Materials Conversion Costs Production Costs Total costs to account for Next, calculate cost per equivalent unit for direct materials and conversion costs Direct Conversion Costs Materials Divide by Cost per equivalent unit Finally, assign total costs to units completed (and transferred out) and to units in ending work in process (WIP). Begin by calculating the total from beginning inventory, then calculate the total costs accounted for. Total Direct Conversion Production Costs Materials Costs Completed and transferred out Total from beginning inventory