Lemon Company uses a process cost system. The Molding Department adds materials at the beginning of the process and conversion costs are incurred uniformly throughout the process. Work in process on May 1 was 8,000 units at 75% complete and work in process on May 31 was 5,000 units at 60% complete.

Instructions: Please fill-in-the-blanks for letters a through r on the production cost report.

Equivalent Units

QUANTITIES Physical Units Materials Conversion Costs

Units to be accounted for

Work in process, May 1 ___Blank 1__

Started into production 32,000

Total units ___Blank 2___

Units accounted for

Transferred out 35,000 ______Blank 3__ ____Blank 4____

Work in process, May 31 __Blank 5___ ___Blank 6_____ ___Blank 7_____

Total units 40,000 ___Blank 8_____ __Blank 9______

COSTS

Unit costs Materials Conversion Costs Total

Costs in May $140,000 $161,500 $301,500

Equivalent units ___Blank 10______ ____Blank 11____

Unit costs $_Blank 12_______ $___Blank 13_____ $ _Blank 14______

Costs to be accounted for

Work in process, May 1 $ 60,000

Started into production 241,500

Total costs $301,500

Cost Reconciliation Schedule

Costs accounted for

Transferred out $____Blank 15____

Work in process, May 31

Materials __Blank 16____

Conversion costs Blank 17 __Blank 18_____

Total costs $301,500