The ledger of Penland Company has the following work in process account. Transfe
ID: 2473974 • Letter: T
Question
The ledger of Penland Company has the following work in process account.
Transferred out
Production records show that there were 300 units in the beginning inventory, 30% complete, 1,280 units started, and 1,290 units transferred out. The beginning work in process had materials cost of $1,980 and conversion costs of $1,820. The units in ending inventory were 30% complete. Materials are entered at the beginning of the painting process.
How many units are in process at May 31?
What is the unit materials cost for May?
What is the unit conversion cost for May?
What is the total cost of units transferred out in May?
What is the cost of the May 31 inventory?
Work in Process-Painting 5/1 Balance 3,800 5/31Transferred out
? 5/31 Materials 4,730 5/31 Labor 2,660 5/31 Overhead 1,480 5/31 Balance ?Explanation / Answer
UNITS IN PROCESS AT MAY 31
FIRST WE WILL CALCULATE EQUIVELENT UNIT FOR MATERIAL AND CONVERSION
UNIT MATERIAL COST OF MAY
UNIT CONVERSION COST OF MAY
COST OF UNITS TRANSFERED OUT IN MAY
= 1290 * ($4.25 + $4.33)
= $11068.20
COST OF ENDINNING INVENTORY
BEGINNING INVENTORY 300 UNIT STARTED DURING MONTH 1280 TOTAL UNITS ACCOUNTED FOR 1580 TRANSFERED OUT UNITS 1290 ENDING INVENTORY 290Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.