Question

The ledger of American Company has the following work in process account.

Work in Process—Painting

5/1 Balance 3,690 5/31 Transferred out ?

5/31 Materials 5,740

5/31 Labor 2,682

5/31 Overhead 2,480

5/31 Balance ?

Production records show that there were 400 units in the beginning inventory, 30% complete, 1,700 units started, and 1,500 units transferred out. The beginning work in process had materials cost of $2,240 and conversion costs of $1,450. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process.

A. What is the unit materials cost for May? (Round unit cost to 2 decimal places, e.g. 2.25.)

B. What is the unit conversion cost for May? (Round unit cost to 2 decimal places, e.g. 2.25.)

C. What is the total cost of units transferred out in May?

D. What is the cost of the May 31 inventory?

Answer 1

2-- х Process Costing - Microsoft Excel (Product Activation Failed) File Home Insert Formulas Data Review View ♡ X Page Layout for A20 A B E F H 1 2 C D AMERICAN COMPANY FOR PAINTING DEPARTMENT PRODUCTION COST REPORT FOR THE MONTH ENDED MAY 31 3 4 5 6 7 $ $ $ $ $ $ 3,690.00 10,902.00 14,592.00 14,592.00 9 10 11 12 Beginning Inventory Cost incurred in Current Period Total Costs to account for Total Costs accounted for *Difference due to rounding cost/unit Units Reconciliation Units to account for Beginning Work in Process Units started this period This units to account for Total units accounted for Completed and transferred out Ending Work in Process (Bal Fig) Total units accounted for 13 14 400 1,700 2,100 15 16 17 18 1,500 600 2,100 19 20 21 Equivalent Units of Production (EUP) 22 Units % MATERIALS EUP - MATERIALS % CONVERSION EUP - CONVERSION 23 24 Units Accounted For Transferred Out Ending Work in Process Total Units Accounted for 25 1,500 600 2,100 100% 100% 100% 1,500.00 600.00 2,100.00 100% 40% 100% 1,500.00 240.00 1,740.00 26 27 28 29 Sheet21 Sheet22 Sheet23 Sheet24 Sheet25 Sheet26 Sheet27 Sheet28 Sheet29 Sheet30 Ready BOI 100% 6:12 AM 17-Sep-20

х X- Process Costing - Microsoft Excel (Product Activation Failed) File Home Insert Formulas Data Review View ♡ X X Page Layout foc A54 A B с D E F G H 30 31 32 33 COSTS PER EUP MATERIALS CONVERSION COSTS 34 35 36 37 Cost of Beginning Work in Process Cost incurred in Current Year Total Costs / Equivalent Units Costs per Equivalent Unit of Production $ 2,240.00 5,740.00 7,980.00 2,100.00 3.80 Costs EUP $ Costs EUP 1,450.00 5,162.00 6,612.00 1,740.00 3.80 38 39 An: A & B $ 40 41 TOTAL COSTS ACCOUNTED FOR : 42 43 An: C 44 Transferred Out Materials Conversion Costs EUP Cost per EUP 1,500.00 $ 3.80 1,500.00 $ 3.80 $ $ Total Cost 5,700.00 5,700.00 45 46 Total Cost transferred out $ 11,400.00 47 48 An : D 49 Ending Work in Process Materials Conversion Costs Total Costs of ending Work in Process 600.00 240.00 $ $ 3.80 3.80 $ $ 2,280.00 912.00 50 51 $ 3,192.00 52 53 Total Costs accounted for $ 14,592.00 54 55 56 57 58 Sheet21 Sheet22 Sheet23 Sheet24 Sheet25 Sheet26 Sheet27 Sheet28 Sheet29 Sheet30 Ready BOI 100% - 6:12 AM 17-Sep-20

Formula Sheet :

Process Costing - Microsoft Excel (Product Activation Failed) х X 95 File Home Insert Formulas Data Review View ♡ X Page Layout for A25 A B E F G H 1 1 2 3 4 с D AMERICAN COMPANY FOR PAINTING DEPARTMENT PRODUCTION COST REPORT FOR THE MONTH ENDED MAY 31 5 6 7 3690 =5740+2682+2480 =SUM(C6:07) =+F53 =+C8-C9 9 10 11 12 Beginning Inventory Cost incurred in Current Period Total Costs to account for Total Costs accounted for *Difference due to rounding cost/unit Units Reconciliation Units to account for Beginning Work in Process Units started this period This units to account for Total units accounted for Completed and transferred out Ending Work in Process (Bal Fig) Total units accounted for 13 14 400 1700 =SUM(C13:C14) 15 16 17 18 1500 =+C19-C17 =+C15 19 20 21 22 % MATERIALS EUP - MATERIALS % CONVERSION EUP - CONVERSION 23 Equivalent Units of Production (EUP) Units Units Accounted For Transferred Out =+C17 Ending Work in Process =+C18 Total Units Accounted for =SUM(C24:C25) 24 1 1 0.4 25 =+C24*D24 =+C25*D25 =SUM(E24:E25) 1 =+C24F24 =+C25*F25 =SUM(G24:G25) 26 1 1 27 28 29 Sheet21 Sheet22 Sheet23 Sheet24 Sheet25 Sheet26 Sheet27 Sheet28 Sheet29 Sheet30 KN Ready BO! 100% - 6:15 AM 17-Sep-20

Kindly note that the sum has been solved as per Weighted Average Method, if you require it by any other method or if you have any other queries please mention it in comment box.

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