Cheery Chews makes all-natural dog bones in a two-stage process Formulary and Production. In the formulary stage, the many different natural ingredients are combined and processed to create the different textures and flavors of the dog bones. In, the production stage, the ingredients combined in the formulary stage are shaped into various shapes, additional flavor coatings are added, and the bones are baked and packaged. During May, the following information for the Formulary Department was recorded:

All materials are added at the beginning of the process. Ending inventory was 40% complete as to conversion.

Required:

1. What is the total cost to be accounted for?

2. Compute the equivalent units.

3. Determine the cost per equivalent unit.

4. Determine the total cost of the units transferred to the Production Department.

5. Determine the total cost of the units still in process in the Formulary Department at the end of May.

6. Reconcile costs to be accounted for (#1) to costs accounted for

Units Costs Materials Conversion Work in Progress Beg. Inventory, May 1 Added to production $2,625 250,000$34,990 $52,395 15,000 $2,110 Completed and transferred out 260,000 5,000 Ending inventory, May 1