The ledger of Sheffield Company has the following work in
process account.
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Work in Process—Painting |
|||||
| 3/1 | Balance | 3,780 | 3/31 | Transferred out | ? |
| 3/31 | Materials | 6,600 | |||
| 3/31 | Labor | 2,000 | |||
| 3/31 | Overhead | 1,500 | |||
| 3/31 | Balance | ? | |||
Production records show that there were 800 units in the beginning
inventory, 30% complete, 1,200 units started, and 1,400 units
transferred out. The units in ending inventory were 40% complete.
Materials are entered at the beginning of the painting process.
Sheffield uses the FIFO method to compute equivalent units.
Answer the following questions.
How many units are in process at March 31?
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Work in process, March 31 i got answer: 600 Units What is the unit materials cost for March? (Round
unit cost to 2 decimal places, e.g. 2.25.)
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1.
Work in process, March1= 800
Started into production =1200
Total units to be accounted=2000
Less: Transferred out =(1400)
Work in process, May 31=600
Work in process, march 31 = 800+1200-1400 = 600 Units
2)
Equivalent unit of material = 800+1200 = 2000
Unit material cost = (0*+6600)/2000 = 3.3
Formula: unit material cost =(cost of beginning work in process+cost at end )/equivalent unit of material
*(Note):The beginning work in process had materials cost is not available is considered as 0.if anything regarding beginning work in process shall be taken in computation.
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