Exercise 16-3 The ledger of Custer Company has the following work in process account. Work in Process-Painting 5/1 Balance 3,800 5/31 Transferred out ? 5/31 Materials 6,440 5/31 Labor 5/31 Overhead 2,260 5/31 Balance 4,300 Production records show that there were 580 units in the beginning inventory, 30% complete, 1,460 units started, and 1,520 units transferred out. The beginning work in process had materials cost of $2,410 and conversion costs of $1,670. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process