5/1 Balance 3,890 5/31Transferred out?5/31 Materials 6,960 5/31 Labor 4,550 5/31

Question

5/1 Balance 3,890 5/31Transferred out?5/31 Materials 6,960 5/31 Labor 4,550 5/31 Overhead 1,880 5/31 Balance ? Production records show that there were 600 units in the beginning inventory, 30% complete, 1,800 units started, and 1,600 units transferred out. The beginning work in process had materials cost of $ 2,640 and conversion costs of $ 1,250. The units in ending inventory were 40% complete.

Materials are entered at the beginning of the painting process. What is the unit materials cost for May?

The unit materials cost for May The unit conversion cost for May What is the unit conversion cost for May?

Explanation / Answer

Ending work in process unit = 600+1800-1600 = 800 Units

Equivalent unit of material = 1600+(800*100%) = 2400 Units

Equivalent unit of conversion = 1600+(800*40%) = 1920 Units

a) Unit material cost = (2640+6960)/2400 = 4 per unit

b) Unit conversion cost = (1250+4550+1880)/1920 = 4 per unit

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