The ledger of American Company has the following work in process account. Work i

Question

The ledger of American Company has the following work in process account.

Work in Process—Painting

Production records show that there were 440 units in the beginning inventory, 30% complete, 1,710 units started, and 1,540 units transferred out. The beginning work in process had materials cost of $3,140 and conversion costs of $550. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process.

(a) How many units are in process at May 31?

(b) What is tje unit materials cost for May?

(c) What is the unit conversion cost for May?

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

(e) What is the cost of the May 31 inventory?

Work in Process—Painting

5/1 Balance 3,690 5/31 Transferred out ? 5/31 Materials 5,890 5/31 Labor 3,830 5/31 Overhead 1,680 5/31 Balance ?

Explanation / Answer

American Company Details Units % Material   Eq Units Material % Coversion Eq Units Conversion WIP 5/1                            440                   100                440                   30                132 Units Started                        1,710                   100            1,710             1,652 Total                        2,150            2,150             1,784 Output Transferred Out                        1,540                   100            1,540                100             1,540 Closing WIP 5/31                            610                   100                610                   40                244 Total                          2,150            2,150             1,784 a Details Units Eq Units Material Eq Units Conversion Units Processed in May                          2,150               2,150            1,784 b Total Material cost May Amt $ Opening WIP                        3,140 During May                        5,890 Total materials                        9,030 Equivalent units produced Materials                        2,150 Unit Material cost $                      4.20 c Conversion cost May Opening WIP                            550 Labor during May                        3,830 OH during May                        1,680 Total Covesrion cost May                        6,060 Equivalent Units convesrion May                        1,784 Units Conversion cost $                      3.40 d Cost of units Transferred Eq Units Rate Total cost Material Cost                        1,540                 4.20            6,468 Conversion cost                        1,540                 3.40            5,231 Total Cost          11,699 e Cost of closing WIP Eq Units Rate Total cost Material Cost                            610                 4.20            2,562 Conversion cost                            244                 3.40                829 Total Cost            3,391

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