The ledger of Hasgrove Company has the following work in process account. Work i
ID: 2420598 • Letter: T
Question
The ledger of Hasgrove Company has the following work in process account.
Work in Process—Painting
Production records show that there were 850 units in the beginning inventory, 30% complete, 1,200 units started, and 1,520 units transferred out. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process. Hasgrove uses the FIFO method to compute equivalent units.
(a) How many units are in process at March 31?
(b) What is the unit materials cost for March?
(c) What is the unit conversion cost for March?
(d) What is the total cost of units started in February and completed in March?
(e) What is the total cost of units started and finished in March?
(f) What is the cost of the March 31 inventory?
Work in Process—Painting
3/1 Balance 3,400 3/31 Transferred out ? 3/31 Materials 6,120 3/31 Labor 2,420 3/31 Overhead 1,120 3/31 Balance ?Explanation / Answer
Solution.
2.
Material cost per unit = $6,120 / 2,033 = $3.01.
3. Unit conversion cost for march.
Conversion cost = Direct labor + Manufactureing overhead
= (2,420 + 1,120) / 2,033
= $1.74
4. What is the total cost of units started in February and completed in March
Unit complete of februry in march = 790 x 70% = 553
Material Cost = 595 x $3.01 = 1,790.95
Conversion cost = 595 x $1.74 = 1,053.30
Total Cost = $2,826.25
5.. Total cost of units started and finished in March
Total unit transfer out = 1,520
Material Cost = 1,520 x $3.01 = 4,575.20
Conversion cost = 1,520 x $1.74 = 2,644.80
Total Cost = $7,220
5. Total cost of work in process, March 31
Total cost of work in process = 530 x $4.75 = $2,517.50.
Work in process, March 31 Units Beginning inventory 850 Started 1,200 Transferred ou (1,520) Unit in W.I.P 530Related Questions
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