HealthySight is a manufacturer of high-quality lenses for sunglasses and ski goggles. HealthySight uses a standard process costing system and carries inventories at standard. In May 2001, the following data were available: Standard Cost of 1 Unit Direct material Conversion Total manufacturing cost Beginning WIP Inventory Started in May Completed in May Ending WIP Inventory $4.50 12.50 $17.00 10,000 units (100% DM; 70% conversion) 180,000 units 160,000 units ? units (100% DM; 60% conversion) Actual costs for May Direct material Conversion Total actual cost $ 781,000 2,045,000 $2,826.000

Required:
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.