Exercise 16-3

The ledger of American Company has the following work in process account.

Work in ProcessPainting
5/1	Balance	3,890	5/31	Transferred out	?
5/31	Materials	6,940
5/31	Labor	3,530
5/31	Overhead	1,880
5/31	Balance	?		Production records show that there were 580 units in the beginning inventory, 30% complete, 1,780 units started, and 1,570 units transferred out. The beginning work in process had materials cost of $2,640 and conversion costs of $1,250. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process. What is the unit materials cost for May? What is the total cost of units transferred out on may? What is the cost of the 31 May inventory?