See attached file.
Managerial Accounting, Third Edition by James Jiambalvo
"Solving Managerial Accounting Problems Using Microsoft Excel for Windows Templates by Rex A Schildhouse"(Spreadsheet template is attached to assist in better understanding problem)
Problem 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 5,000 units in process that were 100% complete with respect to directmaterials and 50%complete with respect to conversion costs (labor and overhead). During the month, the company began production on 100,000 units and ending Work in Process Inventory consisted of 2,000 units that were 100% complete with respect to material and 80% complete with respect to conversion costs.
Cost Information: Beginning Work in Process Costs Added in May
Direct material $3,000 $65,250
Direct labor 125 6,151
Manufacturing 175 7,147
Total: $3,300 $78,548
A. Calculate the cost per equivalent unit for each of the three cost
items and in total.
Give explantion for costs
The denominators for the calculations of cost per equivalent are:
Completed" Equivalent Units
in Ending WIP" Total
Material Number Formula Formula Formula
Labor Number Formula Formula Formula
Overhead Number Formula Formula Formula
Beginning WIP Cost Added Total Denominator Cost per EU
Material Amount Amount Formula Number Formula
Labor Amount Amount Formula Number Formula
Overhead Amount Amount Formula Number Formula
Total Formula Formula Formula Formula
B. Calculate the cost of items completed in May and the cost of ending
Work in Process.
Enter formula as desired.(Formula that is to be
entered in excel spreadsheet template)
Cost of items in 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.
See attached file.
Check the attached sheet for the solution. Compare this with your question ...
The solution computes cost per unit and work in process for Regal Polish.