PROBLEM 3-1. 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 11,000 units in process that were 100 percent complete with respect to direct material and 60 percent complete with respect to conversion costs (labor and overhead). During the month, the company began production of 105,000 units. Ending Work in Process inventory consisted of 5,100 units that were 100 percent complete with respect to material and 70 percent complete with respect to conversion costs.

Cost information	Beginning work in progress	Cost added in May
Direct material	$4,000	$76,040.00
Direct Labor	$200.00	$8,957.60
Manufacturing overhead	$300.00	$10,002.30
Total	$4,500	$94,999.90

1. Calculate the cost per equivalent unit for each of the three cost items and in total. Round to two decimal places.

Use: Cost per equivalent unit =cost in beginning WIP + cost incurred in current period/units completed =equivalent units in ending WIP

2. Calculate the cost of items completed in May and the cost ending work in progress

3. Reconcile the sum of the two costs in part b to the sum of beginning work in progress and costs added in May