"Solving Managerial Accounting Problems Using Microsoft Excel
for Windows Templates by Rex A Schildhouse"

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 10,000 units in process that were 100% complete with respect to direct
Materials and 60% complete with respect to conversion costs (labor and overhead). During the
Month, the company began production on 105,000 units and ending Work in Process Inventory
Consisted of 5,000 units that were 100% complete with respect to material and
70% complete with respect to conversion costs.
Cost Information: Beginning Work in Process Costs Added in May
Direct material $4,000 $76,500
Direct labor 200 8,880
Manufacturing overhead 300 9,915
Total: $4,500 $95,295

Required:
Part a. Calculate the cost per equivalent unit for each of the three cost items and in total.
Text answer as desired.




The denominators for the calculations of cost per equivalent are:
"Units
Completed" "Equivalent Units
in Ending WIP" Total
Material Number Formula Formula
Labor Number Formula Formula
Overhead Number 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

Part b. Calculate the cost of units completed in May and the cost of ending Work in Process.

Enter formula as desired.

Cost of items in ending work in process:
Material Amount
Labor Amount
Overhead Amount
Total Formula

Part 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