Regal Polish manufactures a single product in one department and uses a process

Question

Regal Polish manufactures a single product in one department and uses a process costing system. At the start of May, there were 10,200 units in process that were 100 percent complete with respect to direct material and 60 percent complete with respect to conversion costs (labor and overhead). During the month, the company began production of 105,200 units. Ending Work in Process Inventory consisted of 5,400 units that were 100 percent complete with respect to material and 70 percent complete with respect to conversion costs.



Cost Information
Beginning Work in Process
Costs Added in May

Direct material $4,110 $78,978
Direct labor 270 12,246
Manufacturing overhead 400
15,529

Total $4,780
$106,753






Calculate the cost per equivalent unit for each of the three cost items and in total. (Round answers to 2 decimal places, e.g. 5.25.)

Cost per EU
Material $
Labor
Overhead
Total $








Calculate the cost of items completed in May and the cost of ending Work in Process. (Round computations and final answers to 0 decimal places, e.g. 5,250.)

Cost of items completed in May $
Cost of items in ending work in process $








Reconcile the sum of the two costs in part b to the sum of beginning Work in Process and costs added in May.

Cost of ending WIPCost of items completedBeginning work in processCost added
$
Cost of ending WIPCost of items completedCost addedBeginning work in process

Total $

Cost of items completedCost addedCost of ending WIPBeginning work in process

Beginning work in processCost addedCost of items completedCost of ending WIP

Total $


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Explanation / Answer

a. Direct material $80500/110000+5000 = 0.70 Direct labor 9080/110000+3500 = 0.08 Manufacturing overhead 10215 /110000+3500 = 0.09 Total $99,795 0.87 b.110000*.87 = 95700 Ending WIP (5000*.7+3500*.17) 4095 c.Beginning Work in process 4500 Cost added 95295 Total 99795 Total of b 99795

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