The ledger of Custer Company has the following work in process account. Work in
ID: 2507813 • Letter: T
Question
The ledger of Custer Company has the following work in process account.Work in ProcessPainting 5/1 Balance 4,630 5/31 Transferred out ? 5/31 Materials 6,060 5/31 Labor 3,920 5/31 Overhead 2,230 5/31 Balance ?
Production records show that there were 590 units in the beginning inventory, 30% complete, 1,490 units started, and 1,440 units transferred out. The beginning work in process had materials cost of $2,930 and conversion costs of $1,700. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process Work in ProcessPainting
Exercise 16-3 The ledger of Custer Company has the following work in process account.
Work in ProcessPainting 5/1 Balance 4,630 5/31 Transferred out ? 5/31 Materials 6,060 5/31 Labor 3,920 5/31 Overhead 2,230 5/31 Balance ?
Production records show that there were 590 units in the beginning inventory, 30% complete, 1,490 units started, and 1,440 units transferred out. The beginning work in process had materials cost of $2,930 and conversion costs of $1,700. 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?
Work in process, May 31 units
(b) What is the unit materials cost for May? (Round unit costs to 2 decimal places, e.g. 2.25.)
The unit materials cost for May $
(c) What is the unit conversion cost for May? (Round unit costs to 2 decimal places, e.g. 2.25.)
The unit conversion cost for May $ The ledger of Custer Company has the following work in process account. Production records show that there were 590 units in the beginning inventory, 30% complete, 1,490 units started, and 1,440 units transferred out. The beginning work in process had materials cost of $2,930 and conversion costs of $1,700. 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 the unit materials cost for May? (Round unit costs to 2 decimal places, e.g. 2.25.) (c) What is the unit conversion cost for May? (Round unit costs to 2 decimal places, e.g. 2.25.)
Explanation / Answer
Prepare quantity schedule:
In process beginning –590
Started in the period -1,490
Total to be accounted for -2080
Transferred out 1440units
work In process ending (balancing figure)=2080units-1440units=640 units
Total accounted for 2080
b) What is the unit materials cost for May?
Units
Units transferred out
1440
Work in process, May 31
640
2080
Cost
Work in process, May 1
2930
Costs added:
Material
6060
Total Cost
8990
Unit Material Cost
8990/2080
4.322115
(c) What is the unit conversion cost for May?
Units
Units transferred out
1440
Work in process, May 31
256
(640*40%)
1696
Work in process, May 1
1700
Costs added:
Labor
3920
Overhead
2230
Total Cost
7850
Unit Conversion Cost
4.628538
b) What is the unit materials cost for May?
Units
Units transferred out
1440
Work in process, May 31
640
2080
Cost
Work in process, May 1
2930
Costs added:
Material
6060
Total Cost
8990
Unit Material Cost
8990/2080
4.322115
(c) What is the unit conversion cost for May?
Units
Units transferred out
1440
Work in process, May 31
256
(640*40%)
1696
Work in process, May 1
1700
Costs added:
Labor
3920
Overhead
2230
Total Cost
7850
Unit Conversion Cost
4.628538
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