Question 1 - Unit Reconciliation

During August, Panama Paint Company engaged in manufacturing cans of paint, with the following information concerning its production:

Cans of paint completed                                                         90,000

Cans in production at August 1                                                850

Beginning units complete with respect to material                      75%

Beginning units complete with respect to conversion costs          50%

Cans started during August                                                     95,000

Required - How many units were in Work in Process at the end of August?

Question 2 - Cost Reconciliation

During December, Western Solvent engaged in manufacturing containers of solvent. The following information concerns its production:

Units completed                                                                          40,000

Units in ending work in process                                                    10,000

Ending units complete with respect to labor and overhead              30%

Ending units complete with respect to material                               100%

Costs incurred during December:

Material cost                                                                               $260,000

Labor cost                                                                                  120,000

Manufacturing overhead cost                                                        161,000

Cost per equivalent unit:

Material                                                                                      $6.00

Labor                                                                                         $3.00

Manufacturing overhead                                                              $4.00

Required - Calculate the amount of material cost, labor cost, and overhead cost in beginning Work in Process inventory.

Question 3 - Comprehensive Problem, One Department

Regal Polish manufactures a single product in one department and uses a process costing system. During May, the following production activity occurred:

Units in process at May 1                                                         11,000

Beginning units complete with respect to material                      100%

Beginning units complete with respect to conversion costs          60%

Units started during May                                                          105,000

Units in process at May 31                                                       5,100

Ending units complete with respect to material                          100%

Ending units complete with respect to conversion costs              70%

Cost Information          Beginning Work in Process            Costs Added in May

Direct material                $4,000                                          $76,040.00

Direct labor                     200                                              8,957.60

Overhead                        300                                              10,002.30

Total                               $4,500                                         $94,999.90

Required -

a. Calculate the cost per equivalent unit for each of the three cost items and in total.

b. Calculate the cost of units completed in May and the cost of 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.

Attachment:- Assignment.rar