Question

The ledger of American Company has the following work in process account. Work in Process—Painting 5/1 Balance 3,690 5/31 Transferred out ? 5/31 Materials 5,890 5/31 Labor 3,830 5/31 Overhead 1,980 5/31 Balance ? Production records show that there were 490 units in the beginning inventory, 30% complete, 1,650 units started, and 1,400 units transferred out. The beginning work in process had materials cost of $2,640 and conversion costs of $1,050. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process. Your answer is incorrect. Try again. How many units are in process at May 31? Work in process, May 31 units LINK TO TEXT LINK TO TEXT

Answer 1

Answer:

How many units are in process at May 31?

physical units ending WIP:            740

equivalent units WIP materials:    740

equivalent units WIP conversion: 296

Explanation:

We will add the beginning and started units, then subtract the trasnaferrd out to get the ending WIP inventory.

physical units:

beginning             490

started                1,650

transferred-out (1,400)

ending                  740

Now we will multiply by the percentage of completion to get the equivlent units of WIP on each category:

equivalent units for ending WIP:

materials    740 x 100% = 740

conversion 740 x 40% = 296