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Regal Polish manufactures a single product in one department and uses a process costing system. At the start of May, there were 5,000 units in process that were 100 percent complete with respect to direct materials and 50 percent complete with respect to conversion costs (labor and overhead). During the month the company began production of 100,000 units and ending Work in Process Inventory consisted of 2,000 units that were 100 percent complete with respect to material and 80 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 progress
c. Reconcile the sum of the two costs in part b to the sum of beginning work in progress and cost added in May.
The following standards for variable manufacturing overhead have been established for a company that makes only one product: What is the variable overhead efficiency variance for the month?
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