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
Then,
1430+530=1960
Work in process May1 $3,110
Added Cost $5710 (materials)
Total Cost $8,820 / 1960= $4.50 (whichever decimal place)
To calculate the unit materials cost for May, we need to calculate the total materials cost and divide it by the total number of units.
Step 1: Calculate the total materials cost:
Beginning work in process materials cost: $3,110
Materials added in May: $5,710
Total materials cost = Beginning work in process materials cost + Materials added in May
= $3,110 + $5,710
= $8,820
Step 2: Calculate the total number of units:
Beginning inventory units: 410 units
Units started in May: 1,550 units
Total number of units = Beginning inventory units + Units started in May
= 410 units + 1,550 units
= 1,960 units
Step 3: Calculate the unit materials cost:
Unit materials cost = total materials cost / total number of units
= $8,820 / 1,960 units
≈ $4.50 per unit
Therefore, the unit materials cost for May is approximately $4.50 per unit.
To calculate the unit materials cost for May, you need to consider the materials cost incurred during the period and the number of units involved.
Let's break down the information provided:
1. Beginning Work in Process (5/1):
- Units: 410
- Completion: 30%
- Materials Cost: $3,110
- Conversion Costs: $1,710
2. Started During May:
- Units: 1,550
3. Transferred Out (5/31):
- Units: 1,430
4. Ending Work in Process (5/31):
- Units: Unknown/Question Mark
- Completion: 40%
To calculate the unit materials cost for May, follow these steps:
Step 1: Calculate the equivalent units for materials cost during May.
- Beginning inventory units: 410 x 30% = 123 units
- Units started during May: 1,550 units
- Total equivalent units: 123 + 1,550 = 1,673 units
Step 2: Calculate the total materials cost during May.
- Materials cost on 5/31: $5,710
Step 3: Divide the total materials cost by the equivalent units to get the unit materials cost for May.
- Unit materials cost = $5,710 / 1,673 units
To get the final answer, you need to perform the division in Step 3.