Question

Instructions Journalize the April transactions. E3.3 (LO 2. 3. 4), AP The ledger of American Company has the following work in process account Answer questions on costs and production 5/1 5/31 5/31 5/31 5/31 Balance Materials Labor Overhead Balance Work in Process-Painting 3,590 5/31 Transferred out 5,160 2,530 1,380 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? E3.4 (LO 2), AP Schrager Company has two production departments Cutting and Assembly. July 1 inventories are Raw Materials $4,200, Work in Process-Cutting $2,900. Work in Process- Assembly $10,600, and Finished Goods $31,000. During July, the following transactions occurred. 2:00 PM

please typed no hand written thank you

Answer 1

The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.

Answer Part 1) No. of ending units = beginning units + units started - units transferred out = 400+1600-1700 = 300 units Thus the correct answer is 300 unit in process at May 31 Part 2) Unit Material Cost For May = $3.6 (For Calculations refer to the working note) Part 3) Unit Conversion Cost For May = $3 (For Calculations refer to the working note) Part 4) Total cost of units transferred out = units transferred out * (total cost per equivalent unit) = 1700*6.6 = $ 11220 Thus the correct answer is $ 11220

Part 5) Cost of May 31 Inventory = (equivalent units of direct material * per unit cost of direct material)+ (equivalent unit for conversion cost * per unit cost of conversion cost) = (300*3.6)+(120*3) = $ 1440 Thus the correct answer is $ 1440 Working notes and calculations Converion Equivalent Units Pbysical Unit % Completion Pulping 1700 300 100 2000 100 Particular Units completed and transferred Units in ending inventory Equivalent units 100 % Completion 1700 300 2000 40 1700 120 1820 Part 2) Cost per equivalent unit Particular Pulping Cost in Beginning inventory Cost incurred during the period Total cost to be account for Equivalent unit Cost per equivalent unit Converion 2040 5160 7200 2000 3.60 1550 3910 5460 1820 3.00