Work in Process—Painting (a), (b) and (c) The ledger of Custer Company has the f

Question

Work in Process—Painting

(a), (b) and (c)

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

Work in Process—Painting

5/1 Balance 4,040 5/31 Transferred out ? 5/31 Materials 6,400 5/31 Labor 3,450 5/31 Overhead 2,220 5/31 Balance ?
Production records show that there were 450 units in the beginning inventory, 30% complete, 1,550 units started, and 1,590 units transferred out. The beginning work in process had materials cost of $2,320 and conversion costs of $1,720. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process.

Explanation / Answer

Answer(a) Calculation of the units are in process at May 31:

=450 units beginning +1550 units started -1590 transferred out=410 units physically in process.

Answer:(b) Calculation of the unit materials cost for May:

Answer:(c) Calculation of the unit conversion cost for May:

Units transferred out 1590 Work in process, May 31 410 Equivalent units of material 2000 Work in process, May 1 2320 Costs added: Material 6400 Total cost 8720 Equivalent units of material 2000 Unit material cost 4.36

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