The ledger of Grogan Company has the following work in process account:
Work in Process - Painting
Production records show that there were 800 units in the beginning inventory, 20% complete, 1,200 units started, and 1,500 units transferred out. The units in ending inventory were 60% complete. Materials are entered at the beginning of the painting process.
Instructions:
Answer the following questions (preparing a production cost report will make these questions easier to answer):
1. Complete the Work in Process - Painting t-account as you compute the values asked for below.
2. How many units were actually worked on during the month of May?
3. How many units are in process at May 31?
4. What are the total costs to account for?
5. What is the unit materials cost for May?
6. What is the unit conversion cost for May?
7. What is the total cost of units started in April and finished in May?
8. What is the total cost of units started and finished in May?
9. What is the cost of the May 31 inventory?
10. If all the products completed and transferred out were sold for $17 per unit, what would be the gross profit earned.
11. What would be the gross profit% on the units that were completed and transferred out and then sold for $17 per unit?