The assembly division of Stiles Watches​,Inc. uses the FIFO method of process costing. Consider the following data for the month of May 2017​:     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.         Physical Flow of Production Units 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   Equivalent Units Direct Conversion Materials Costs                                     1: Data Table   Physical Units Direct Conversion   (Watches) Materials Costs Beginning work in process (May 1)a 120 $285,600   $71,250   Started in May 2017 490     Completed during May 2017 440     Ending work in process (May 31)b 170     Total costs added during May 2017   $3,336,100   $1,673,000   aDegree of​ completion: direct​ materials, 85​%; conversion​ costs, 25​%. bDegree of​ completion: direct​ materials, 70​%; conversion​ costs, 40​%.

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Chapter1: Financial Statements And Business Decisions
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The assembly division of Stiles Watches​,Inc. uses the FIFO method of process costing. Consider the following data for the month of May
2017​:
 
 
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.
 
 
 
 
Physical
Flow of Production
Units
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
 
Equivalent Units
Direct
Conversion
Materials
Costs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1: Data Table
 
Physical Units
Direct
Conversion
 
(Watches)
Materials
Costs
Beginning work in process (May 1)a
120
$285,600  
$71,250  
Started in May 2017
490
 
 
Completed during May 2017
440
 
 
Ending work in process (May 31)b
170
 
 
Total costs added during May 2017
 
$3,336,100  
$1,673,000  
aDegree of​ completion: direct​ materials, 85​%; conversion​ costs, 25​%.
bDegree of​ completion: direct​ materials, 70​%; conversion​ costs, 40​%.
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