ACC 561 Week 4 WileyPLUS Assignment

Exercise 16-3
The ledger of Custer Company has the following work in process account.

Work in Process—Painting
5/1 Balance 4,720 5/31 Transferred out ?
5/31 Materials 7,220 
5/31 Labor 4,280 
5/31 Overhead 2,070 
5/31 Balance ?

Production records show that there were 430 units in the beginning inventory, 30% complete, 1,500 units started, and 1,450 units transferred out. The beginning work in process had materials cost of $3,030 and conversion costs of $1,690. 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?
(b) What is the unit materials cost for May?
(c) What is the unit conversion cost for May?

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.

Total estimated overhead costs are $308,500. Overhead cost allocated to the machining activity cost pool is $197,900, and $110,600 is allocated to the machine setup activity cost pool.