(Standard process costing) Eye-Guard is a manufacturer of high-quality lenses for sunglasses and ski goggles. Eye-Guard uses a standard process costing system and carries inventories at standard. In July 1997, the following data were available:

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.LO1

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Direct material Conversion costs Total manufacturing cost Beginning WIP inventory Started in July Completed in July Ending WIP inventory Actual costs for July Direct material Conversion Total actual cost STANDARD COST OF 1 UNIT $ 4.50 12.50 $17.00 10,000 units (100% DM; 70% Conversion) 180,000 units 160,000 units ? units (100% DM; 60% Conversion) $ 781,000 2,045,000 $2,826,000