Question

Exercise 16-05 In Shady Company, materials are entered at the beginning of each process. Work in process inventories, with the percentage of work done on conversion costs, and production data for its Sterilizing Department in selected months during 2020 are as follows. Beginning Work in Process Conversion Units Cost% 0 Month Units Transferred Out Ending Work in Process Conversion Units Cost% 1,800 67 3,400 35 January March 0 12,100 12,300 14,500 12,000 May 0 80 7,290 2,300 July 0 41 Compute the physical units for January and May. January May Units to be accounted for Beginning work in process Started into production Total units Units accounted for Transferred out Ending work in process Total units LINK TO TEXT LINK TO VIDEO

Answer 1

Answer

• Requirement asked

	January	May
Units to be accounted for
Beginning work in process	-	-
Started into production	13,900	21,790
Total units	13,900	23,130
Units accounted for
Transferred out	12,100	14,500
Ending work in process	1,800	7,290
Total units	13,900	23,130

	Materials	Conversion Costs
Jan	13,900	13,306
Mar	15,700	13,490
May	21,790	20,332
Jul	14,300	12,943

--Working

	Materials	Conversion Costs
Jan	=+(12100*100%)+(1800*100%)	=+(12100*100%)+(1800*67%)
Mar	=+(12300*100%)+(3400*100%)	=+(12300*100%)+(3400*35%)
May	=+(14500*100%)+(7290*100%)	=+(14500*100%)+(7290*80%)
Jul	=+(12000*100%)+(2300*100%)	=+(12000*100%)+(2300*41%)