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.

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 goods completed.

Transcribed Image Text:

Unit Information Work in process, May 1 (85% complete) 50,000 Units started during May 100,000 Total to account for 150,000 Units completed 120,000 Units in ending WIP (40% complete) 30,000 Units accounted for 150,000 Cost information Direct Material Conversion Total Work in process, May 1 $ 45,000 $360,500 $405,500 Cost incurred during May 102,000 825,000 927,000