E10 Reconciliation of Units and ICosts At the start of July, Classic Car Wax Companv had beginning Work in Process of 2,500 units that were 90 percent complete with respect to material and 45 percent complete with respect to conversion costs. The cost of the units was $?,000 [$5,000 of material and $2,000 of conversion costs). During the month, the com panv started produch'on of 40,000 units and incurred $224,500 of material cost and $01,?50 of labor and overhead. Costs per equivalent unit were $5.00 for material and $2.50 for labor and overhead [conversion costs}. The cost of items completed was $314,500 [$222,000 for materials and $92,500 for labor and overhead}. Units in ending Work in Process are 25 percent complete with respect to material and 10 percent complete with respect to conversion costs. Required a. Prepare a reconciliation of units. Unit Reconciliation Units Beginning Work in Process 2,500 Units started in Julyr M Units to account for 421500 Units completed and transferred to packing 372000 Units in ending Work In Porocess 5500 Units account for 421500 b. What is the cost of ending Workin Process? Material [(5500 *.25l*0 units ] + labor and overhead [(5500 *.1}*2.5unit] $01625 Ending work in process 2