Question

The ledger of American Company has the following work in process account. Work in Process-Painting 5/1 Balance 3,890 5/31 Transferred out 5/31 Materials 6,960 5/31 Labor 4,550 5/31 Overhead 1,880 5/31 Balance Production records show that there were 600 units in the beginning inventory, 30% complete, 1,800 units started, and 1,600 units transferred out. The beginning work in process had materials cost of $2,640 and conversion costs of $1,250. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process. How many units are in process at May 317 Work in process, May 31 units What is the unit materials cost for May? (Round unit cost to 2 decimal places, e.g. 2.25.) The unit materials cost for May What is the unit conversion cost for May? (Round unit cost to 2 decimal places, e.g. 2.25.) The unit conversion cost for May What is the total cost of units transferred out in May? The total cost of units transferred out in May What is the cost of the May 31 inventory? Work in process

Answer 1

Que 1
WIP May 31	800	Units
	600+1800-1600
Que 2
Material cost
Beg WIP	2640
5/31	6960
	9600
Equivalent units
End WIP	800
Units completed	1600
	2400
Material cost for may	4	9600/2400
Que 3
Conversion cost
Beg WIP	1250
5/31	6430
	7680
Equivalent units
End WIP(40%)	320
Units completed	1600
	1920
Convevrsion cost for may	4	7680/1920
Ques 4
Units completed	1600
Unit cost	8	4+4
total cost of units	12800
Ques 5
Materials:Ending WIP	800*4	3200
Conversion:Ending WIP	320*4	1280
total cost ending WIP		4480