Exercise 3-19 Work in Process—Painting Warning Don\'t show me this message again
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Exercise 3-19
Work in Process—Painting
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Exercise 3-19
The ledger of Hasgrove Company has the following work in process account.Work in Process—Painting
3/1 Balance 3,420 3/31 Transferred out ? 3/31 Materials 6,260 3/31 Labor 2,740 3/31 Overhead 800 3/31 Balance ?Production records show that there were 790 units in the beginning inventory, 30% complete, 1,150 units started, and 1,390 units transferred out. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process. Hasgrove uses the FIFO method to compute equivalent units.
Explanation / Answer
Solution.
1.
2.
Material cost per unit = $6,260 / 1,923 = $3.25.
3. Unit conversion cost for march.
Conversion cost = Direct labor + Manufactureing overhead
= (2,740 + 800) / 1,923
= $1.84
4. What is the total cost of units started in February and completed in March
Unit complete of februry in march = 790 x 70% = 553
Material Cost = 553 x $3.25 = 1,797.25
Conversion cost = 553 x $1.84 = 1,017.52
Total Cost = $2,814.77
5.. Total cost of units started and finished in March
Total unit transfer out = 1,390
Material Cost = 1,390 x $3.25 = 4,417.50
Conversion cost = 1,390 x $1.84 = 2,557.60
Total Cost = $6,975.10
5. Total cost of work in process, March 31
Total cost of work in process = 550 x 5.09 = $2,799.50
Work in process, March 31 Units Beginning inventory 790 Started 1,150 Transferred ou (1,390) Unit in W.I.P 550Related Questions
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