Exercise 16-3 Work in Process—Painting LINK TO TEXT LINK TO TEXT LINK TO TEXT Ex
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Question
Exercise 16-3
Work in Process—Painting
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Exercise 16-3
The ledger of Custer Company has the following work in process account.Work in Process—Painting
5/1 Balance 3,760 5/31 Transferred out ? 5/31 Materials 6,880 5/31 Labor 4,400 5/31 Overhead 2,140 5/31 Balance ?Production records show that there were 560 units in the beginning inventory, 30% complete, 1,490 units started, and 1,460 units transferred out. The beginning work in process had materials cost of $2,160 and conversion costs of $1,690. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process.
Explanation / Answer
EQUIVALENT UNITS STATEMENT (FIFO METHOD)
______________________________________________________________________________________________
PARTICUALRS INPUT PARTICULARS OUTPUT MATERIALS CONVERSION _______
Opening wip 560 Transferred % UNITS % UNITS
(b) Unit Material cost for May is $ 5.92
(c) Unit Conversion cost is $ 5.38