The assembly division of Walton Time Pieces, Inc. uses the FIFO method of process costing. Consider the following data for May 2020:
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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.
Flow of Production
Work in process, beginning
Started during current period
To account for
Completed and transferred out during current period:
From beginning work in process
Started and completed
Work in process, ending
Accounted for
Equivalent unts of work done in current period
Data table
Equivalent Units
Physical
Units
Direct
Conversion
Materials
Costs
60
Physical Units
Direct
Conversion
(Watches)
Materials
Beginning work in process (May 1)
60
$521,450
Costs
$71,250
Started in May 2020
485
Completed during May 2020
455
Ending work in process (May 31)b
90
$3,832,000 $1,551,000
Total costs added during May 2020
Degree of completion: direct materials, 65%; conversion costs, 35%.
Degree of completion: direct materials, 70%; conversion costs, 40%.
Print
Done
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