Chapter 21, Problem 21.3E

To determine

Equivalent Units of Production: It is a measure to record a processing department’s activity on the basis of total completed units produced. Work in process units are converted into full units and added to completed or transferred out production to find the equivalent units of production.

Conversion Cost: The cost that includes direct labor and factory overheads is reported as conversion cost because it processed the raw material to the next level that work in process or finished goods.

To compute: (b) units in process at May 31, (b) unit material cost for May, (c) unit conversion cost for May, (d) total cost of units transferred out in May and (e) cost of the May 31 inventory