The assembly division of Marzollo Time Pieces, Inc. uses the FIFO method of process costing. Consider the following data for May 2020: (Click the icon to view the data.) 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 Physical Units 80 500 580 80 380 120 580 Equivalent Units Direct Materials Conversion Costs Data table Beginning work in process (May 1)ª Started in May 2020 Physical Units (Watches) 80 500 460 120 Print Completed during May 2020 Ending work in process (May 31)b Total costs added during May 2020 aDegree of completion: direct materials, 90%; conversion costs, 40%. Degree of completion: direct materials, 60%; conversion costs, 30%. Done Direct Conversion Costs $71,250 Materials $493,360 $3,220,000 $1,392,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The assembly division of Marzollo Time Pieces, Inc. uses the FIFO method of process costing. Consider the following data for May 2020:
(Click the icon to view the data.)
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
Physical
Units
80
500
580
80
380
▼
120
580
Equivalent Units
Direct
Materials
Conversion
Costs
Data table
b
Physical Units
(Watches)
80
500
460
120
Beginning work in process (May 1)ª
Started in May 2020
Completed during May 2020
Ending work in process (May 31)b
Total costs added during May 2020
aDegree of completion: direct materials, 90%; conversion costs, 40%.
Degree of completion: direct materials, 60%; conversion costs, 30%.
Print
Direct
Materials
$493,360
Done
$3,220,000
Conversion
Costs
$71,250
$1,392,000
I
Transcribed Image Text:The assembly division of Marzollo Time Pieces, Inc. uses the FIFO method of process costing. Consider the following data for May 2020: (Click the icon to view the data.) 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 Physical Units 80 500 580 80 380 ▼ 120 580 Equivalent Units Direct Materials Conversion Costs Data table b Physical Units (Watches) 80 500 460 120 Beginning work in process (May 1)ª Started in May 2020 Completed during May 2020 Ending work in process (May 31)b Total costs added during May 2020 aDegree of completion: direct materials, 90%; conversion costs, 40%. Degree of completion: direct materials, 60%; conversion costs, 30%. Print Direct Materials $493,360 Done $3,220,000 Conversion Costs $71,250 $1,392,000 I
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