please show how to compute unit material cost for May show how to compute unit c
ID: 2339232 • Letter: P
Question
please show how to compute unit material cost for May
show how to compute unit conversion cost for May
show how to compute total cost of units transferred out and cost of May inventory work in process
Exercise 16-3 The ledger of American Company has the following work in process account Work in Process-Painting 5/1 Balance 5/31 Materials 7,000 3,790 5/31 Transferred out ? 5/31 Labor 5/31 Overhead 1,980 2,930 5/31 Balance Production records show that there were 410 units in the beginning inventory, 30% complete, 1,740 units started, and 1,440 units transferred out. The beginning work in process had materials cost of $2,640 and conversion costs of$1,150. 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 31 710 unitsExplanation / Answer
Units
Reconciliation of Units
A
Opening WIP
410
B
Introduced
1,740
C=A+B
TOTAL
2,150
D
Transferred
1,440
E=C-D
Closing WIP
710
Statement of Equivalent Units
Material
Conversion Cost
Units
Complete %
Equivalent units
Complete %
Equivalent units
Transferred
1,440
100%
1,440
100%
1,440
Closing WIP
710
100%
710
40%
284
Total
2,150
Total
2,150
Total
1,724
Cost per Equivalent Units
COST
Material
Conversion Cost
TOTAL
Beginning WIP Inventory Cost
$ 2,640.00
$ 1,150.00
$ 3,790.00
Cost incurred during period
$ 7,000.00
$ 4,910.00
$ 11,910.00
Total Cost to be accounted for (A)
$ 9,640.00
$ 6,060.00
$ 15,700.00
Total Equivalent Units (B)
2,150
1,724
Cost per Equivalent Units (A/B)
$ 4.484
$ 3.515
Statement of cost
Cost
Equivalent Cost/unit
Ending WIP
Transferred
Units
Cost Allocated
Units
Cost Allocated
Material
$4.48372
710
$ 3,183.44
1,440
$ 6,456.56
Conversion Cost
$ 3.51508
284
$ 998.28
1,440
$ 5,061.72
TOTAL
$ 15,700.00
TOTAL
$ 4,181.72
TOTAL
$ 11,518.28
ADDTNAL INFORMATION FOR UNDERSTANDING
Reconciliation
Cost to be accounted for
Beginning Work In Progress:
Material
$ 2,640.00
Conversion Cost
$ 1,150.00
$ 3,790.00
Cost incurred during period:
Material
$ 7,000.00
Conversion Cost
$ 4,910.00
$ 11,910.00
Total Cost to be accounted for
$ 15,700.00
Cost accounted for
Cost of Units transferred
Equivalent Units
Cost per Equivalent Units
Cost accounted for
Material
1,440
$ 4.48
$ 6,456.56
Conversion Cost
1,440
$ 3.52
$ 5,061.72
$ 11,518.28
Cost of ending WIP
Equivalent Units
Cost per Equivalent Units
Cost accounted for
Material
710
$ 4.48
$ 3,183.44
Conversion Cost
284
$ 3.52
$ 998.28
$ 4,181.72
Total Cost accounted for
$ 15,700.00
Units
Reconciliation of Units
A
Opening WIP
410
B
Introduced
1,740
C=A+B
TOTAL
2,150
D
Transferred
1,440
E=C-D
Closing WIP
710
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