E3.3 (LO 2, 3, 4), AP The ledger of American Company has the following work in process inventory account. Work in Process-Painting Balance Direct materials Direct labor Manufacturing overhead Balance Production records show that there were 400 units in the beginning inventory, 30% complete, 1,600 units started into production, and 1,700 units completed and transferred out. The beginning work in process had materials cost of $2,040 and conversion costs of $1,550 The units in ending inventory were 40% complete as to conversion costs. Materials are entered at the beginning of the painting process and conversion costs are incurred uniformly throughout the process. 5/1 5/31 5/31 5/31 5/31 Instructions a. How many units are in process at May 31? b. What is the unit materials cost for May? c. What is the unit conversion cost for May? 3,590 5,160 2,530 1,380 ? 5/31 Completed and transferred out ?

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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E3.3 (LO 2, 3, 4), AP The ledger of American Company has the following work in process inventory account.
Work in Process-Painting
5/1
5/31
5/31
5/31
5/31
Balance
Direct materials
Direct labor
Manufacturing overhead
Balance
3,590 5/31 Completed and transferred out ?
5,160
Instructions
a. How many units are in process at May 31?
b. What is the unit materials cost for May?
2,530
1,380
P
Production records show that there were 400 units in the beginning inventory, 30% complete, 1,600 units started into production, and
1,700 units completed and transferred out. The beginning work in process had materials cost of $2,040 and conversion costs of $1,550.
The units in ending inventory were 40% complete as to conversion costs. Materials are entered at the beginning of the painting process,
and conversion costs are incurred uniformly throughout the process.
c. What is the unit conversion cost for May?
d. What is the total cost of units completed and transferred out in May?
e. What is the cost of the May 31 work in process inventory?
Journalize transactions for two processes.
Transcribed Image Text:E3.3 (LO 2, 3, 4), AP The ledger of American Company has the following work in process inventory account. Work in Process-Painting 5/1 5/31 5/31 5/31 5/31 Balance Direct materials Direct labor Manufacturing overhead Balance 3,590 5/31 Completed and transferred out ? 5,160 Instructions a. How many units are in process at May 31? b. What is the unit materials cost for May? 2,530 1,380 P Production records show that there were 400 units in the beginning inventory, 30% complete, 1,600 units started into production, and 1,700 units completed and transferred out. The beginning work in process had materials cost of $2,040 and conversion costs of $1,550. The units in ending inventory were 40% complete as to conversion costs. Materials are entered at the beginning of the painting process, and conversion costs are incurred uniformly throughout the process. c. What is the unit conversion cost for May? d. What is the total cost of units completed and transferred out in May? e. What is the cost of the May 31 work in process inventory? Journalize transactions for two processes.
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Since there are multiple subparts, we will answer only first three subparts. 

Process costing is one of the costing system under which product has to go through in order to prepare final product. Weighted average method is one of the common method used for process costing. 

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