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Category > Accounting Posted 26 Jul 2017 My Price 11.00

Regal Polish

Chapter 3 Problem 3-1

Comprehensive Problem, One Department [LO 3, 4] Regal Polish manufactures a single product in one department and uses a process costing system. At the start of May, there were 10,000 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 105,000 units. Ending Work in Process Inventory consisted of 5,000 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 $4,000 $76,500
Direct labor 200 8,880
Manufacturing overhead 300 9,915
Total $4,500, $95,295

Required
a. Calculate the cost per equivalent unit for each of the three cost items and in total.
b. Calculate the cost of items completed in May and the cost of ending Work in Process.
c. Reconcile the sum of the two costs in part b to the sum of beginning Work in Process and costs added in May.

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Maurice Tutor
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Status NEW Posted 26 Jul 2017 02:07 PM My Price 11.00

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