Question 1 The ledger of American Company has the following work in process acco

Question

Question 1 The ledger of American Company has the following work in process account. Work in Process-Painting 3,890 5/31 Transferred out ? 5/1 Balance 5/31 Materials 5.510 5/31 Labor 5/31 Overhead 1,480 531 Balance 3,630 1 49 ut. The be inning workin process had materials cost of S Production records show at here were 560 units in he be inning in en on 30% comp ete 1 770 units started an The units in e ding inventory were 40% complete. Materials are entered at the beginning of the painting process. units ran erre and conversion cost ot

Explanation / Answer

Calculation of units in process at May 31 No.of units Beginning Inventory 560 Add : Units started 1770 Less : Units transferred 1490 Units in process at May 31 840 Calculation of equivalent units for material cost and conversion cost Physical Units % Complete with respect to Material Equivalent units for Material Cost % Complete with respect to Conversion Equivalent units for Conversion Cost Units transferred 1490 100% 1490 100% 1490 Units in process at May 31 840 100% 840 40% 336 Total Equivalent Units 2330 1826 Calculation of unit material cost for May Material cost Beginning work in process $2,340.00 Material added $5,510.00 Total Material cost to account for $7,850.00 / Equivalent Units for Material cost 2330 Unit Material Cost for May $3.369 Calculation of unit conversion cost for May Conversion cost Beginning work in process $1,550.00 Cost added $5,110.00 Total Conversion cost to account for $6,660.00 / Equivalent Units for Conversion cost 1826 Unit Conversion Cost for May $3.647 Calculation of total cost of units transferred out in May Cost Material [1490 units * $3.369] $5,020 Conversion [1490 units * $3.647] $5,435 Total Cost of units transferred out $10,454 Calculation of total cost of May 31 Inventory Cost Material [840 units * $3.369] $2,830 Conversion [336 units * $3.647] $1,225 Total Cost of May 31 Inventory $4,056

Related Questions

Navigate

• Browse (All)
• Browse Q
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.