# Managerial Accounting: P3-1 Regal Polish manufactures a single product in one department

Managerial Accounting

P3-1 Comprehensive Problem, One Department

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

a. 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.)

b. 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.)

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

P3-1 Comprehensive Problem, One Department

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

a. 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.)

b. 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.)

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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