>(Standard process costing) HealthySight is a manufacturer of high quality lenses for sunglasses and ski goggles. HealthySight uses a standard process costing system and carries inventories at standard. In May 2001, the following data were available:
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Standard Cost |
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of 1 Unit |
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Direct material |
$ 4.50 |
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Conversion |
12.50 |
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Total manufacturing cost |
$17.00 |
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Beginning WIP Inventory |
10,000 units (100% DM; 70% conversion) |
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Started in May |
180,000 units |
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Completed in May |
160,000 units |
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Ending WIP Inventory |
? units (100% DM; 60% conversion) |
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Actual costs for May |
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Direct material |
$ 781,000 |
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Conversion |
2,045,000 |
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Total actual cost |
$2,826,000 |
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a.Prepare an equivalent units of production schedule.
b.Prepare a cost of production report and assign costs to goods transferred and to inventory.
c.Calculate and label the variances and charge them to Cost of Goods Sold.