The ledger of Custer Company has the following work in process account. Work in
ID: 2377970 • Letter: T
Question
The ledger of Custer Company has the following work in process account.Work in Process The ledger of Custer Company has the following work in process account.
Work in Process Work in Process Exercise 16-3 The ledger of Custer Company has the following work in process account.
Work in Process The ledger of Custer Company has the following work in process account. Production records show that there were 440 units in the beginning inventory, 30% complete, 1,480 units started, and 1,530 units transferred out. The beginning work in process had materials cost of $2,650 and conversion costs of $1,690. 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? What is the unit materials cost for May? (Round unit costs to 2 decimal places, e.g. 2.25.) What is the unit conversion cost for May? (Round unit costs to 2 decimal places, e.g. 2.25.)
Explanation / Answer
Requirement A: Work in process, May 1 440 Started in production 1,480 Total units to account for 1,920 Less: units transferred out 1,530 Work in process, May 31 390 Requirements B and C: Equivalent Units Materials Conversion Units transferred out 1,530 1,530 Explanation: since these were already transferred out, the assumption is the units are 100% completed Work in process, May 31 Materials (390 x 100%) 390 Explanation: since materials are entered at the beginning of the process, the assumption is ending inventory units are 100% completed with materials Conversion (390 x 40%) 156 Explanation: conversion costs is only 40% completed as given in the problem 1,920 1,686 Materials Costs Conversion Costs Work in process, May 1 2,650 1,690 Costs incurred during the month 5,460 5,260 Explanation: conversion costs is composed of labor and overhead costs Total Costs 8,110 6,950 Divide by: Equivalent units 1,920 1,686 Unit Costs $ 4.22 $ 4.12
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.