Section 3: Equivalent units of production: Li 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 75% complete and work in process on May 31 was 40% complete Instructions Li COMPANY Molding Department Production Cost Report For the Month Ended May 31, 2019 Equivalent Units Physical Units Materials Conversion Costs QUANTITIES Units to be accounted for Work in process, May 1 Started into production Total units 8,000 32,000 40.000 Units accounted for Transferred out Work in process, May 31 Total units 35,000 5,000 40.000 COSTS Unit costs Costs in May Equivalent units Unit costs Materials $140.000 Conversion Costs $161.500 Total $301.500 Costs to be accounted for Work in process, May 1 Started into production Total costs $ 60,000 241.500 $301,500 Cost Reconciliation Schedule Costs accounted for Transferred out Work in process, May 31 Materials Conversion costs Total costs