Posted by Patiance on .
The ledger of Custer Company has the following work in process account.
Work in Process—Painting
5/1 Balance 4,820 5/31 Transferred out ?
5/31 Materials 5,710
5/31 Labor 4,800
5/31 Overhead 2,430
5/31 Balance ?
Production records show that there were 410 units in the beginning inventory, 30% complete, 1,550 units started, and 1,430 units transferred out. The beginning work in process had materials cost of $3,110 and conversion costs of $1,710. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process.
What is the unit materials cost for May?
Can someone explain to me how to get this answer please?
First you have to calculate a) which is 530.
410+ 550-1430= 530
Work in process May1 $3,110
Added Cost $5710 (materials)
Total Cost $8,820 / 1960= $4.50 (whichever decimal place)