# Managerial Accounting Cost per Unit & WIP

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

overhead

Total: $3,300 $78,548

Required:

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:

"Units

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:

Material Amount

Labor Amount

Overhead Amount

Total

C. Reconcile the sum of the two costs in part b to the sum of beginning

Work in Process and costs added in May.

Title Amount

Title Amount

Total Formula

Title Amount

Title Amount

Total Formula

https://brainmass.com/business/accounting/managerial-accounting-cost-per-unit-wip-273204

#### Solution Preview

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#### Solution Summary

The solution computes cost per unit and work in process for Regal Polish.