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Exercise 16-3
The ledger of American Company has the following work in process
account.
Production records show that there were 400 units in the beginning
inventory, 30% complete, 1,600 units started, and 1,700 units transferred
out. The beginning work in process had materials cost of $2,040 and
conversion costs of $1,550. The units in ending inventory were 40%
complete. Materials are entered at the beginning of the painting process.
How many units are in process at May 31?
What is the unit materials cost for May?
What is the unit conversion cost for May?
What is the total cost of units transferred out in May?
What is the cost of the May 31 inventory?
Exercise 17-1
Saddle 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 $240,000. Overhead cost allocated to
the machining activity cost pool is $140,000, and $100,000 is allocated