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The ledger of Custer Company has the following work in process account.

Work in Process—Painting
5/1	Balance	4,220	5/31	Transferred out	?
5/31	Materials	6,690
5/31	Labor	4,600
5/31	Overhead	1,460
5/31	Balance	?

Production records show that there were 450 units in the beginning inventory, 30% complete, 1,570 units started, and 1,580 units transferred out. The beginning work in process had materials cost of $2,480 and conversion costs of $1,740. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process.

(a) How many units are in process at May 31?

Work in process, May 31

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units

(b) What is the unit materials cost for May? (Round unit costs to 2 decimal places, e.g. 2.25.)

The unit materials cost for May

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(c) What is the unit conversion cost for May? (Round unit costs to 2 decimal places, e.g. 2.25.)

The unit conversion cost for May

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Wilkins Inc. has two types of handbags: standard and custom. The controller has decided to use a plantwide overhead rate based on direct labor costs. The president has heard of activity-based costing and wants to see how the results would differ if this system were used. Two activity cost pools were developed: machining and machine setup. Presented below is information related to the company’s operations.

	Standard	Custom
Direct labor costs	$49,600	$98,400
Machine hours	1,240	1,470
Setup hours	100	400

Total estimated overhead costs are $309,400. Overhead cost allocated to the machining activity cost pool is $195,800, and $113,600 is allocated to the machine setup activity cost pool.