The ledger of American Company has the following work in process account. Work i
ID: 2407033 • Letter: T
Question
The ledger of American Company has the following work in process account.
Work in Process—Painting
Production records show that there were 480 units in the beginning inventory, 30% complete, 1,760 units started, and 1,410 units transferred out. The beginning work in process had materials cost of $2,840 and conversion costs of $850. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process.
Work in Process—Painting
5/1 Balance 3,690 5/31 Transferred out ? 5/31 Materials 6,840 5/31 Labor 4,230 5/31 Overhead 1,280 5/31 Balance ?Explanation / Answer
Work in Process- Painting 5/1 Balance 3,690 5/31 Transferred out 11,241 5/31 Materials 6,840 5/31 Labor 4,230 5/31 Overhead 1,280 5/31 Balance 4,799 Working: a. Equivalent units: Material Conversion Physical Units % of completion Equivalent Units % of completion Equivalent Units Units Completed 1410 100% 1410 100% 1410 Ending units 830 100% 830 40% 332 Total 2240 2240 1742 b. Materials Conversion Costs Total Beginning Costs 2,840 850 3,690 Costs incurred during the period 6,840 5,510 12,350 Total Costs 9,680 6,360 16,040 ÷ Equivalent Units of production 2240 1742 Cost per equivalent units $ 4.32 $ 3.65 c. Units Transferred out: Equivalent units Cost per equivalent unit Total Costs Materials 1410 $ 4.32 $ 6,093 Conversion 1410 $ 3.65 $ 5,148 $ 11,241 Ending Units: Materials 830 $ 4.32 $ 3,587 Conversion 332 $ 3.65 $ 1,212 $ 4,799 $ 16,040
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.