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

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Question 1 The ledger of American Company has the following work in process account Work in Process-Painting 3,690 5/31 Transferred out? 51 Balance 5/31 Materials 5,610 3,730 S/31 Labor 5/31 Overhead 2,480 31 Balance Production records show that there were 410 units in the beginning inventory, 30% complete, 1,720 units started, and 1,490 units transferred out. The beginning work in process had materials cost of $2,240 and conversion costs of $1,450. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process. How many units are in process at May 31 Work in process, May 31 640 units What is the unit materials cost for May? (Round unit cost to 3 decimal places,e.g. 2.257.) The unit materials cost for May

Explanation / Answer

Statement of Equivalent production Particulars Direct Materials %completion Equivalent mat Conversion %completion Equivalent Conv Total Opening WIP                    410.00 100%                       410.00                    410.00 100%                       410.00 Units started and completed=1490 - 410                1,080.00 100%                    1,080.00                1,080.00 100%                    1,080.00 ending WIP = 1720 - 1080                    640.00 100%                       640.00                    640.00 40%                       256.00 Equivalent Units                    2,130.00                    1,746.00 Opening WIP Costs                    2,240.00                    1,450.00                    3,690.00 Current Month Costs                    5,610.00                    6,210.00                 11,820.00 Total costs                    7,850.00                    7,660.00                 15,510.00 Cost per Equivalent units                            3.69                            4.39 Ending WIP Units                       640.00                       256.00 Cost of Ending WIP                    2,358.69                    1,123.12                    3,481.80 Units completed and transferred out                    1,490.00                    1,490.00 Cost of Units completed and transferred out                    5,491.31                    6,536.88                 12,028.20 Note - Assumed weighted average method in absence of information

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