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).......... 40,000

Units started during May................. 90,000

Total to account for...................130,000

Units completed..................110,000

Units in ending WIP (45% complete) ........... 20,000

Units 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 goodscompleted.

Transcribed Image Text:

Cost information Work in Process, May 1 Cost incurred during May Direct Material $ 42,000 86,700 Lonversion $340,300 733,080 Total $382,300 819,780