Exercise 163 Part Level Submission The ledger of American Co

Exercise 16-3 (Part Level Submission) The ledger of American Company has the following work in process account

Exercise 16-3 (Part Level Submission) The ledger of American Company has the following work in process account Work in Process-Painting 3,790 5/31 Transferred out? 5/1 Balance 5/31 Materials5,650 5/31 Labor 5/31 Overhead 2,080 3,330 5/31 Balance Production records show that there were 570 units in the beginning inventory, 30% complete, 1,630 units started, and 1,530 units transferred out. The beginning work in process had materials cost of $2,440 and conversion costs of $1,350. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process. (a) Your answer is correct. How many units are in process at May 31? Work in process, May 31 Click if you would like to Show Work for this question: 670 units Open Show Work

Solution

Equivalent units for materials = 1530+670 = 2200 The unit materials cost for May = (2440+5650)/2200= $3.677