Explore BrainMass

# Managerial Accounting Cost per Unit & WIP

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

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

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

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

Cost of items in ending work in process:
Material Amount
Labor 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

#### Solution Preview

See attached file.

Check the attached sheet for the solution. Compare this with your question ...

#### Solution Summary

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

\$2.19