Question

The ledger of American Company has the following work in process account. WORK IN PROCESS MANUFACTURING COSTS Raw Materials Factory Manufacturing Inventory Labor Overhead FINISHED GOODS INVENTORY $6,940 $4,766 Balance May 1 Materials Labor Overhead Transfer out Balance May 31 Painting $3,790 6,940 4,766 2,280 - ? $? -$2,280 ? Production records show that there were 600 units in the beginning inventory, 30% complete, 1,600 units started, and 1,600 units transferred out. The beginning work in process had materials cost of $2,740 and conversion costs of $1,050. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process.

Answer 1

A B с D E 1 The units materials cost for May $ 4.40 2 The units conversion cost for May $ 4.40 3 The total cost of units transferred out in May $ 14,080 4 Work in process $ 3,696 5 6 Working Note: 7 8 Units accounted for 9 Transferred out 1600 1600 1600 10 Ending Work in process 600 600 240 11 Total units 2200 2200 1840 12 13 Costs Materials Conversion costs Total 14 Unit costs 15 Total Costs $ 9,680$ 8,096 $ 17,776 16 Equivalent units 2200 1840 17 Unit costs $ 4.400$ 4.400$ 8.800 18 19 Costs accounted for 20 Transferred out $ 14,080 21 Ending Work in process 22 Materials $ 2,640 23 Conversion costs $ 1,056 $ 3,696 24 Total costs $ 17,776

A B с D E 1 The units materials cost for May =+C17 2 The units conversion cost for May =+D17 3 The total cost of units transferred out in May =+E20 4 Work in process =+E23 5 6 Working Note: 7 8 Units accounted for 9 Transferred out 1600 =+B9*100% =+B9*100% 10 Ending Work in process =600+1600-1600 =+B10*100% =+B10*40% 11 Total units =+B9+B10 =+C9+C10 =+D9+D10 12 13 Costs Materials Conversion costs Total 14 Unit costs 15 Total Costs |=2740+6940 =1050+4766+2280 =+C15+D15 16 Equivalent units =+C11 =+D11 17 Unit costs =+C15/16 =+D15/D16 =+C17+D17 18 19 Costs accounted for 20 Transferred out =+B9*E17 21 Ending Work in process 22 Materials =+C10*C17 23 Conversion costs =+D10*D17 =+D22+D23 24 Total costs =+E20+E23