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 11,100 units in process that were 100 percent complete with respect to direct material and 50 percent complete with respect to conversion costs (labor and overhead). During the month, the company began production of 103,600 units. Ending Work in Process inventory consisted of 5,100 units that were 100 percent complete with respect to material and 70 percent complete with respect to conversion costs. Cost Information Direct material Direct labor Manufacturing overhead Beginning Work in Process $4,990 150 210 $5,350 Costs Added in May $78,000 8,470 9,100 $95,570 Total Calculate the cost per equivalent unit for each of the three cost items and in total. (Round answers to 4 decimal places, e.g. 0.1252.) Cost per EU Material 7235 0752 0812 Labor Overhead Total 8799 LINK TO TEXT Calculate the cost of items completed in May and the cost of ending Work in Process. (Round answers to 2 decimal places, e.g. 125.25.) Cost of items completed in May Cost of ending Work in Process LINK TO TEXT Reconcile the sum of the two costs in part b to the sum of beginning Work in Process and costs added in May. (Note: Totals may be off due to rounding.) (Round answers to 2 decimal places, e.g. 125.25.) Beginning work in process Cost added Total Cost of items completed Cost of ending WIP Total

Explanation / Answer

Regal Polish Units % Material Eq unit Material % Conversion Eq unit Conversion May 1 opening WIP              11,100 100%         11,100 50%              5,550 Units Started in May            103,600 100%       103,600         107,620 Total            114,700       114,700         113,170 Output   Goods Finished            109,600 100%       109,600 100%         109,600 Cloing WIP May 31                 5,100 100%            5,100 70%              3,570 Total            114,700       114,700         113,170 Cost Details May Material cost Direct Labor cost Manufacturing OH cost Total Opening WIP costs                 4,990                   150               210        5,350 Costs incurred May              78,000               8,470            9,100      95,570 Total Costs              82,990               8,620            9,310    100,920 Equivalent Units produced            114,700          113,170       113,170 Equivalent Unit Cost $              0.7235             0.0762         0.0823      0.8820 Costs of Items completed Units completed            109,600 Cost Type Eq Unit cost Total Cost Material cost              0.7235             79,300 Direct Labor cost              0.0762               8,348 Manufacturing Overhead cost              0.0823               9,016 Total Cost               96,664 Costs of Items in closing WIP Units completed                 5,100 Cost Type Eq Unit cost Eq Units   Total Cost Material cost              0.7235               5,100            3,690 Direct Labor cost              0.0762               3,570               272 Manufacturing Overhead cost              0.0823               3,570               294 Total Cost              4,256 Cost Reco Details Amt $ Opening WIP                 5,350 Cost Added May              95,570 Total cost              100,920 Cost of goods finished                96,664 Cost of closing WIP                 4,256 Total cost            100,920

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