Question

Exercise 3-3 (Video) The ledger of American Company has the following work in process account. Work in Process-Painting 5/1 Balance 3,8905/31 Transferred out 5/31 Materials 5/31 Labor 5,320 3,018 1,380 5/31 Overhead 5/31 Balance Production records show that there were 400 units in the beginning inventory, 30% complete, 1,700 units started, and 1,400 units transferred out. The beginning work in process had materials cost of $2,240 and conversion costs of $1,650. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process. Your answer is correct. How many units are in process at May 31? Work in process, May 31 700 units SHOW SOLUTION SHOW ANSWER LINK TO TEXT LINK TO TEXT LINK TO TEXT VIDEO: SIMILAR EXERCISE

Answer 1

2) Equivalent unit of material = 1400+700 = 2100

Unit cost of material = (2240+5320)/2100 = 3.60

3) Equivalent unit of conversion = 1400+(700*40%) = 1680

Unit cost of conversion = (1650+3018+1380)/1680 = 3.60

4) Cost of unit transferred out = 1400*7.20 = 10080

5) Cost of ending WIP = (700*3.6+280*3.6) = 3528