Exercise 16-3 Work in Process—Painting LINK TO TEXT LINK TO TEXT LINK TO TEXT Ex

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Exercise 16-3

Work in Process—Painting

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LINK TO TEXT

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Exercise 16-3

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

Work in Process—Painting

5/1 Balance 3,760 5/31 Transferred out ? 5/31 Materials 6,880 5/31 Labor 4,400 5/31 Overhead 2,140 5/31 Balance ?
Production records show that there were 560 units in the beginning inventory, 30% complete, 1,490 units started, and 1,460 units transferred out. The beginning work in process had materials cost of $2,160 and conversion costs of $1,690. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process.

Explanation / Answer

EQUIVALENT UNITS STATEMENT (FIFO METHOD)

______________________________________________________________________________________________

PARTICUALRS       INPUT      PARTICULARS       OUTPUT       MATERIALS           CONVERSION _______

Opening wip              560        Transferred                                    %           UNITS        %            UNITS

(b) Unit Material cost for May is $ 5.92

(c) Unit Conversion cost is $ 5.38

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