Question

The ledger of Platt Company has the following work in process account:

Work in Process—Painting

3/1

Balance

$3,000

3/31

Transferred out

$?

3/31

Materials

6,930

3/31

Labour

2,120

3/31

Overhead

1,548

3/31

Balance

?

Production records show that there were 900 units in the beginning inventory, 30% complete, 1,100 units started, and 1,300 units transferred out. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process. Platt uses the FIFO method to calculate equivalent units.

How many units are in process at March 31?

Work in process, March 31

units

What is the unit materials cost for March? (Round unit cost to 2 decimal places, e.g. 15.25.)

Unit cost

$

What is the unit conversion cost for March? (Round unit cost to 2 decimal places, e.g. 15.25.)

Unit cost

$

What is the total cost of units started in February and completed in March?

Total cost

$

What is the total cost of units started and finished in March?

Total cost

$

What is the cost of the March 31 inventory?

Total cost

$

Answer 1

Solution

Que 1
WIP May 31	700	Units
	900+1100-1300
Que 2
Material cost
Beg WIP	0
5/31	6930
	6930
Equivalent units
End WIP	700
Units completed	1300
	2000
Material cost for may	3.47	6930/2000
Que 3
Conversion cost
Beg WIP	0
5/31	3668 (2120+1548)
	3668
Equivalent units
End WIP(30%)	210
Units completed	1300
	1510
Convevrsion cost for may	2.43	3668/1510
Ques 4
Units completed	1300
Unit cost	5.90	2.43+3.47
total cost of units	7670
Ques 5
Materials:Ending WIP	700*3.47	2429
Conversion:Ending WIP	210*2.43	510.30
total cost ending WIP		2939.30

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