Exercise 16-03 The ledger of American Company has the following work in process account. Work in ProcessPainting | 5/1 | Balance | 3,790 | 5/31 | Transferred out | ? | 5/31 | Materials | 5,930 | | | | 5/31 | Labor | 4,068 | | | | 5/31 | Overhead | 2,280 | | | | 5/31 | Balance | ? | | | | Production records show that there were 600 units in the beginning inventory, 30% complete, 1,700 units started, and 1,500 units transferred out. The beginning work in process had materials cost of $3,040 and conversion costs of $750. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process. | | | |