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Newberry Company accumulates costs for its product using a process costing system. Direct materials are added at the beginning of the production process, and conversion occurs evenly throughout the production process. Below is information related to May.
Unit Information:
Work in process, May 1 (75% complete)..........40,000Units started during May.................90,000Total to account for...................130,000Units completed..................110,000Units in ending WIP (45% complete) ...........20,000Units accounted for.................130,000
Required:
a. Compute the cost per equivalent unit for material and for conversion costs for May.
b. Compute the costs of units completed during May.
c. Compute the cost of work in process at the end of May.
d. Prepare a journal entry to record the cost of goods completed.
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