Work in Process—Painting Link to Text Link to Text Link to Text $ The ledger of

Question

Work in Process—Painting

Link to Text

Link to Text

Link to Text

$

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

Work in Process—Painting

5/1 Balance 3,780 5/31 Transferred out ? 5/31 Materials 6,360 5/31 Labor 4,220 5/31 Overhead 2,020 5/31 Balance ?
Production records show that there were 410 units in the beginning inventory, 30% complete, 1,500 units started, and 1,500 units transferred out. The beginning work in process had materials cost of $2,280 and conversion costs of $1,660. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process.

Explanation / Answer

Part a)

The Work in Process as on May 31 is calculated as follows:

__________

Part b)

The unit cost of material is calculated as follows:

__________

Part c)

The unit cost of conversion is calculated as follows:

____________

Part d)

The total cost of units transferred out in May is calculated as follows:

Total Cost of Units Transferred = Total Units Completed and Transferred*(Material Cost Per Unit + Conversion Cost Per Unit) = 1,500*(4.524 + 4.748) = $13,908

____________

Part e)

The total cost of May 31 inventory is calculated as follows:

Total Cost of May 31 Inventory = (Ending WIP for Material)*(Material Cost Per Unit) + (Ending WIP for Conversion)*(Conversion Cost Per Unit) = 410*4.524 + 164*4.748 = $2,634

Work in Process (May 1) 410 Add Units Started into Production 1,500 Total Units to be Accounted For 1,910 Less Units Completeted & Transferred Out 1,500 Work in Process (May 31) 410

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.