1 correct answer please - Get correct answer Full work please ! Exercise 3 The l
ID: 2391276 • Letter: 1
Question
1 correct answer please- Get correct answer
Full work please ! Exercise 3 The ledger of American Company has the following work in process account. Work in Process-Painting 5/1 Balance 3,690 5/31 Transferred out 5/31 Materials 5,260 5/31 Labor 2,630 5/31 Overhead 1,280 5/31 Balance Production records show that there were 400 units in the beginning inventory, 30% complete, i 600 units started, and i 400 units transfe ed out. The beginning work in process had materials cost of $2,140 and conversion costs of Si,sso. 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 Work in process, May 31 units What is the unit materials cost for May? (Round unit cost to 3 decímal places, e.g. 2.257.) The unit materials cost for May
Explanation / Answer
Exercise-3-3: a. Work in process, May 31 600 Units Working: Beginning Inventory 400 Units Units started into production 1600 Units Total 2000 Units Less: Units transferred out 1400 Units Ending Inventory 600 Units b. Unit Material cost for May $ 3.288 (refer working #2) c. Unit conversion Cost for May $ 2.572 (refer working #2) d. Total cost of unit transferred out in May $ 10,270 (refer working #3) e. Cost of May 31 Inventory $ 2,590 (refer working #3) Working: 1) Equivalent units: Units Materials Conversion % of completion EUP** % of completion EUP** Unit completed from beginning inventory 400 0% 0 70% 280 Units completed from current period inventory 1000 100% 1000 100% 1000 Units in Ending Inventory 600 100% 600 40% 240 Total 2000 1600 1520 ** EUP stands for Equivalent units of production. 2) Cost per Equivalent unit: Cost per unit: Materials Conversion Cost Incurred during current period $ 5,260 $ 3,910 Equivalent Units of Production 1600 1520 Cost per EUP $ 3.288 $ 2.572 3) Cost of Units transferred out: EUP Cost per EUP Total Cost From Beginning inventory of last period: Materials $ 2,140 Conversion Cost $ 1,550 From beginning inventory in current Period: Materials 0 $ 3.288 0 Conversion Cost 280 $ 2.572 $ 720 Units completed form current period Materials 1000 $ 3.288 $ 3,288 Conversion Cost 1000 $ 2.572 $ 2,572 $ 10,270 Cost of Ending Work in process: Materials 600 $ 3.288 $ 1,973 Conversion Cost 240 $ 2.572 $ 617 $ 2,590 Total Costs $ 12,860 Exercise 3-10: a. Materials Conversion Costs Equivalent units of production 2,63,500 2,53,268 b. Materials Conversion Costs Unit Cost $ 0.40 $ 2.90 c. Transferred out $ 7,85,136 Ending Work in process $ 54,741 Workings: 1) Beginning Inventory 20,520 Units started into production 2,42,980 Total 2,63,500 Less:Ending units 25,580 Units completed and transferred out 2,37,920 2) Equivalent units: Units Materials Conversion % of completion EUP** % of completion EUP** Units completed 2,37,920 100% 2,37,920 100% 2,37,920 Units in Ending Inventory 25,580 100% 25,580 60% 15,348 Total 263500 2,63,500 2,53,268 3) Cost per Equivalent unit: Materials Conversion Costs Incurred $ 1,05,400 $ 7,34,477 Equivalent units of production 2,63,500 2,53,268 Cost per Equivalent units $ 0.40 $ 2.90 4) EUP Cost per EUP Total Costs of units transferred out: Materials 2,37,920 $ 0.40 $ 95,168 Conversion 2,37,920 $ 2.90 $ 6,89,968 $ 7,85,136 Costs of Ending Work in process: Materials 25,580 $ 0.40 $ 10,232 Conversion 15,348 $ 2.90 $ 44,509 $ 54,741 Total $ 8,39,877
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