Standard process costing) Dark Out manufactures sunglass and ski goggle lenses. The company uses a standard process costing system and carries in¬ ventories at standard. In May 2006, the following data were available:

a. Prepare an equivalent units of production schedule, to. Prepare a cost of production report and assign costs to goods trans¬ ferred and to inventory.

c. Calculate and label the variances and close them to Cost of Goods Sold.LO1.

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Direct material Conversion Total manufacturing cost Beginning WIP Inventory Started in May Completed in May Ending WIP Inventory Actual costs for May Direct material Conversion Total actual cost Standard Cost of 1 Unit $ 5.50 12.50 $18.00 10,000 units (100% DM; 70% conversion) 180,000 units 160,000 units ? units (100% DM; 60% conversion) $ 981,000 2,145,000 $3,126,000