FIFO method, equivalent units. Suppose the assembly division at Fenton Watches, Inc., uses the FIFO method of process costing instead of the weighted average method. Compute equivalent units for direct materials and conversion costs. Show physical units in the first column of your schedule.
|
Physical Units (Watches) |
Direct Materials |
Conversion Costs |
|
|
Beginning work in process (May 1) |
80 |
$ 493,360 |
$ 91,040 |
|
Started in May 2012 |
500 |
||
|
Completed during May 2012 |
460 |
||
|
Ending work in process (May 31) |
120 |
||
|
Total costs added during May 2012 |
$3,220,000 |
$1,392,000 |