Please do part E Exercise 16-3 (Part Level Submission) The ledger of American Co
ID: 2532476 • Letter: P
Question
Please do part E
Exercise 16-3 (Part Level Submission) The ledger of American Company has the following work in process account Work in Process-Painting 3,690 5/31 Transferred out ? 5/1 Balance 5/31 Materials 5,740 5/31 Labor 2,830 /31 Overhead 1,280 5/31 Balance Production records show that there were 500 units in the beginning inventory, 30% complete, 1,680 units started, and 1,440 units transferred out The beginning work in process had materials cost of $2,540 and conversion costs of $1,150. The units in ending inventory were 40% complete Materials are entered at the beginning of the painting process XYour answer is incorrect. Try again How many units are in process at May 31? Work in process, May 31 2.59 unitsExplanation / Answer
Solution Requirement 1 Summary of Physical Units and Equivalent Unit calculation Units to account for Beginning Inventory 500 Units started during May 1,680 Total units to account for 2,180 (500+1680) Total units accounted for Units completed and transferred out during May 1,440 Work in process May 31 (In units) 740 (2,180-1440) Total units accounted for 2,180 Equivalent units of production-Weighted average method (unit*% Material) (unit*% Conversion) Units % Material EUP-Material % Conversion EUP-Conversion Units completed and transferred out 1,440 100% 1,440 100% 1,440 Work in process July 31 (In units) 740 100% 740 40% $ 296 Equivalent Units of conversion 2,180 1,736 Requirement 2,3 Cost per Unit Material Conversion Total Cost of beginning work in progress $ 2,540 $ 1,150 $ 3,690 Cost incurred during the year $ 5,740 $ 4,110 $ 9,850 Total Cost Cost $ 8,280 Cost $ 5,260 $ 13,540 Equivalent Units of production EUP 2,180 EUP 1,736 Cost per Unit $ 3.798 $ 3.030 Requirement 4 Cost assignment and reconciliation aa bb aa*bb EUP Cost per EUP Total Cost Cost transferred out Direct material 1,440 $ 3.798 $ 5,469 (1,440*3.798) Conversion Cost 1,440 $ 3.030 $ 4,363 (1440*3.030) The total cost of units transferred out in May $ 9,832 Requirement 5 Cost of ending work in progress Direct material 740 $ 3.798 $ 2,811 (740*3.798) Conversion Cost 740 $ 1.212 $ 897 (740*3.030*40%) Work-in-process-the cost of May 31 inventory $ 3,708 Total Cost accounted for $ 13,540 Answer: a. Work in process, May 31 740 Units b. The unit material cost for May $ 3.798 c. The unit conversion cost for May $ 3.030 d. The total cost of units transferred out in May $ 9,832 Work-in-process $ 3,708