Exercise 163 The ledger of American Company has the followin

Exercise 16-3 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 Materials 5/31 Labor S/31 Overhead 1,680 5/31 Balance 2,930 Production records show that there were 530 units in the beginning inventory, 30% complete, 1,750 units started, and 1,480 units transferred out. The beginning work in process had materials cost of $2,840 and conversion costs of $950. 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 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 What is the unit conversion cost for May? (Round unit cost to 3 decimal places, e.g. 2.257.) The unit conversion cost for Mays What is the total cost of units transferred out in May? (Round answer to 0 decimal places, e.g. 1,225.) The total cost of units transferred out in Mays What is the cost of the May 31 inventory? (Round answer to O decimal places, e.g. 1,225.) Work in process Click if you would like to Show Work for this question:

Solution

(A) How many units are in process at May 31 Work in process May.1 530 Started into production 1750 Total units to be accounted for 2280       LESS : Transferred out 1480 Work in process, May 31 800 (B) What is the unit materials cost for May UNITS Units transferred out 1480 Work in process, May 31 800 Total units 2280 COST Work in process, May 1 $2840 Costs added :      Material $5560 Total cost    $8400 Unit Material Cost = Toal Cost / Total Units = $8400 / 2280 $3.684 (C) What is the unit conversion cost for May? UNITS Units transferred out 1480 Work in process, May 31 ( 800 * 40% ) 320 Total units 1800 Work in process, May 1 $950 Costs added :      Labour $2930      Overhead $1680 Total cost $5560 Unit conversion cost = Total Cost / Total Units = $5560 / 1800 $3.088 (D) What is the total cost of units transferred in May Material ( 1480 * 3.684 ) 5452.32 Conversion Cost ( 1480 * 3.088 ) 4570.24 Total cost of transferred out 10022.56 (E) What is the cost of the May 31 inventory Material ( 800 * 3.684) 2947.2 Conversion cost ( 320 * 3.088 ) 988.16 Total cost of May 31 inventory 3935.36