5/1 Balance 3,890 5/31 transferred? 5/31 Materials 6,960 5/31 Labor 4,550 5/31 O

Question

5/1 Balance 3,890 5/31 transferred? 5/31 Materials 6,960 5/31 Labor 4,550 5/31 Overhead 1,880 5/31 Balance 3890

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.

How many units are in process at May 31? 800 units Work in process, May 31

What is the unit materials cost for May? 4 The unit materials cost for May

What is the unit conversion cost for May The unit conversion cost for May 4.00

What is the total cost of units transferred out in May?

The total cost of units transferred out in May

Explanation / Answer

1 Units are in process at May 31 = 600+1800-1600 = 800 units 2 Equivalent units for materials = 1600+800 = 2400 Unit materials cost for May = (2640+6960)/2400= $4 3 Equivalent units for conversion = 1600+(800*40%) = 1920 Unit materials cost for May = (1250+4550+1880)/1920= $4 4 Total cost of units transferred out in May = 1600*(4+4)= $12800

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