EXERCISE $2$

Legacy Company manufactures umbrellas and has the following information available for the month of May:

Work in process, May I

$(100\%$ complete for materials, $90\%$ for conversion$)$

$36,000$ units

Direct materials

$$64,500$

Conversion cost

$$87,500$

Number of units starled

$90,500$ units

May costs

Direct materials

$$103,000$

Conversion cost

$$189,500$

Work in process; May $31.$

$(100\%$ complete for materials, $20\%$ for conversion$)$

$33,500$ units