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 percent complete with respect to direct materials and 50 percent complete with respect to conversion costs (labor and overhead). During the month the company began production of 100,000 units and ending Work in Process Inventory consisted of 2,000 units that were 100 percent complete with respect to material and 80 percent complete with respect to conversion costs.

Cost info: Begining WIP Costs added in May

direct material $3,000 $65,250

direct labor 125 6,151

M. overhead 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.

b. Calculate the cost of items completed in May and the cost of ending WIP.

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