Question

Documenti - Word nces Mailings Review View Help E 21 A Aa A E. DA AaBbccd4ABCD Aabba Abbcct AaB Aabbed AaBbc 1 Normal 1 No Spac... Heading 1 Heading 2 Subtle Title Subtitle Paragraph Question 1 The ledger of Magdy Company has the following work in process account: Work in Process --Painting 5/1 Balance $3,690 5/31 Transferred out 57 S/31 Materials 8,150 5/31 Labour 2,400 5/31 Overhead 1,452 5/31 Balance 52 Production records show that there were 420 units in the beginning inventory, 35% complete, 1,250 units started, and 1,250 units transferred out. The beginning work in process had materials costs of $1,870 and conversion costs of $1,820. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process. 1. How many units are in process at May 31? Work in process: 1 2. What is the unit materials cost for May? Unit material cost: 3. What is the unit conversion cost for May? Unit conversion cost: 4. What is the total cost of units transferred out in May? Total cost of units transferred out: 5. What is the cost of the May 31 inventory? Cost of the inventory: o i ASUMMO BOOK

Answer 1

1.

Units in ending work in process = 420+1,250-1,250 = 420 units

2.

		Equivalent units
		Material	Conversion
Units transferred out	1,250	1,250	1,250
Units in ending work in process	420	420	168(420*40%)
Total		1,670	1,418

	Material	Conversion
Cost in beginning work in process	$1,870	$1,820
Cost added during the period	8,150	3,852
Total costs	10,020	5,672
Total equivalent units	1,670	1,418
Cost per equivalent unit	$6	$4

2.

Unit material cost = $6

3.

Unit conversion cost = $4

4.

Total cost of units transferred out:

Material (1,250*$6)	$7,500
Conversion (1,250*$4)	5,000
Total cost of units transferred out	$12,500

5.

Cost of inventory:

Material (420*$6)	$2,520
Conversion (168*$4)	672
Total cost of inventory	$3,192