The ledger of American Company has the following work in process account. Produc
ID: 2529400 • Letter: T
Question
The ledger of American Company has the following work in process account.
Production records show that there were 400 units in the beginning inventory, 30% complete, 1,600 units started, and 1,700 units transferred out. The beginning work in process had materials cost of $2,040 and conversion costs of $1,550. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process.
Instructions
(a)
How many units are in process at May 31?
(b)
What is the unit materials cost for May?
(c)
What is the unit conversion cost for May?
(d)
What is the total cost of units transferred out in May?
(e)
What is the cost of the May 31 inventory?
Work in Process—Painting 5/1 Balance 3,590 5/31 Transferred out ? 5/31 Materials 5,160 5/31 Labor 2,530 5/31 Overhead 1,380 5/31 Balance ?Explanation / Answer
a) Unit in ending work in process = 400+1600-1700 = 300 unit
b) Unit cost of material = (2040+5160)/1600 = 4.5 per unit
c) Unit cost of conversion = (1550+2530+1380)/1820 = 3 per unit
d) Total cost of units transferred = (4.5+3)*1700 = 12750
e) Cost of may 31 inventory = (300*4.5+120*3) = 1710
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.