ANSWER:

Problem: Weighted-average method, equivalent units. The assembly division

of Quality Time Pieces, Inc. uses the weighted-average method of process costing. Consider
the following data for the month of May 2017:

Physical Units Direct Conversion

(Watches) Materials Costs
Beginning work in process (May 1)a 100 $ 459,888 $ 142,570
Started in May 2017 510
Completed during May 2017 450
Ending work in process (May 31)b 160
Total costs added during May 2017 $3,237,000 $1,916,000
a
Degree of completion: direct materials, 80%; conversion costs, 35%.
b
Degree of completion: direct materials, 80%; conversion costs, 40%.

Required:

• Compute equivalent units for direct materials and conversion costs. Show physical units in
the first column of your schedule.

• summarize the total costs to account for, calculate the cost per equivalent unit for direct
materials and conversion costs, and assign costs to the units completed (and transferred
out) and units in ending work in process.
Problem: Refer to the information in PREVIOUS Exercise. Suppose the
assembly division at Quality Time Pieces, Inc. uses the FIFO method of process
costing instead of the weighted-average method.

Required:
• Compute equivalent units for direct materials and conversion costs. Show
physical units in the first column of your schedule.
• use the FIFO method to summarize the total costs to 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.