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Question - Regal Polish manufactures a single product in one department and uses a process costing system. At the start of May, there were 10,900 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 106,600 units. Ending Work in Process inventory consisted of 5,080 units that were 100 percent complete with respect to material and 60 percent complete with respect to conversion costs.
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. (Note: Totals may be off due to rounding.).
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