The ledger of Hasgrove Company has the following work in process account. Work i
ID: 2582332 • Letter: T
Question
The ledger of Hasgrove Company has the following work in process account.
Work in Process—Painting
Production records show that there were 800 units in the beginning inventory, 30% complete, 1,100 units started, and 1,500 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.
A. How many units are in process at March 31?
B.What is the unit materials cost for March?
C.What is the unit conversion cost for March?
D.What is the total cost of units started in February and completed in March?
E.What is the total cost of units started and finished in March?
F.What is the cost of the March 31 inventory?
Work in Process—Painting
3/1 Balance 3,680 3/31 Transferred out ? 3/31 Materials 6,600 3/31 Labor 2,400 3/31 Overhead 1,150 3/31 Balance ?Explanation / Answer
Answer A Units in process at March 31 Beginning Inventory 800 Add : Units Started 1100 Less : Units Transferred out 1500 Units in process at March 31 400 Answer B Unit materials cost for March = Total Material cost for march / No.of units started = $6600 / 1100 units = $6 per unit Answer C Unit conversion cost for March = Labour and overhead cost for March / Equivalent units for conversion cost Labour and overhead cost for March = $2400+$1150 = $3550 Equivalent units for conversion cost Beginning inventory (800 units * 70% completed) 560 Started and transferred (700 units * 100% completed) 700 Ending Inventory (400 units * 40%) 160 Equivalent units for conversion cost 1420 Unit conversion cost for March = $3550 /1420 units = $2.50 per unit Answer D The total cost of units started in February and completed in March Cost of beginning work in process $3,680 Cost added during March for completion (560 EU * $2.50) $1,400 The total cost of units started in February and completed in March $5,080 Answer E The total cost of units started and finished in March Material Cost (700 units*$6) $4,200 Conversion cost (700 units * $2.50) $1,750 The total cost of units started and finished in March $5,950 Answer F The cost of the March 31 inventory Material Cost (400 units*$6) $2,400 Conversion cost (160 EU * $2.50) $400 The total cost of units started and finished in March $2,800
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