Donbrowski Co. manufactures reflective lenses and uses a standard process costing system. For May 2010, the following data are available:

Standard Cost of 1 Unit

Direct material ............$5.50

Conversion .............12.50

Total manufacturing cost ....... $18.00

Beginning WIP Inventory ...... 10,000 units (100% DM; 70% conversion)

Started in May .......... 180,000 units

Completed in May ......... 150,000 units

Ending WIP Inventory .......? units (100% DM; 60% conversion)

Actual costs for May:

Direct material ......... $1,001,000

Conversion ........... 2,136,000

Total actual cost ........ $3,137,000

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 close them to Cost of Goods Sold.