Carson Paint Company, which manufactures quality paint to sell at premium prices, uses a single production department. Production begins by blending the various chemicals that are added at the beginning of the process and ends by filling the paint cans. The gallon cans are then transferred to the shipping department for crating and shipment. Direct labor and overhead are added continuously throughout the process. Factory overhead is applied at the rate of $3 per direct labor dollar. The company combines direct labor and overhead in computing product cost. Prior to May, when a change in the manufacturing process was implemented, Work-in - Process Inventories were insignificant. The changed manufacturing process, which has resulted in increased equipment capacity, allows increased production but also results in considerable amounts of Work-in - Process Inventory. Also, the company had 1,000 spoiled gallons in May-one-half of which was normal spoilage and the rest abnormal spoilage. The product is inspected at the end of the production process. These data relate to actual production during the month of May: Costs Work-in - Process Inventory, May 1 Direct materials $ 106, 704 Direct labor 14, 359 May costs added: Direct materials 426,816 Direct labor 57, 436 Units Work-in - Process Inventory, May 1 30% complete as to conversion activity 2,000 100% complete as to direct materials Sent to shipping department 24, 500 Started in May 30,000 Work-in - Process Inventory, May 31 80% complete as to conversion activity 6, 500 100% complete as to direct materials Total spoilage (units), in May ? question mark % Spoilage considered normal 50% Stage of processing when spoilage is detected 100% Required 1. Prepare a production cost report for May using the weighted Production Cost Report average method. Note: (Do not round intermediate calculations. Round "Cost per EU" answers to 2 decimal places.)\table [[Carson Paint Company], [ May], [, Production Information], [, Physical Units, \table[[Direct], [Materials]], Conversion], [, Quantity Recap: Physical Units], [Input:], [Beginning WIP,,, %,,%