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

Work in ProcessPainting

5/1 5/31 5/31 5/31	Balance Materials Labor Overhead	5,390 7,740 4,110 2,470	5/31	Transferred out	?
5/31	Balance	?

Production records show that there were 800 units in the beginning inventory, 30% complete, 2,800 units started, and 3,100 units transferred. The beginning work in process had materials cost of $3,060 and conversion costs of $2,330. The units in ending inventory were 40% complete. Materials are entered at the beginning of the painting process. Instructions: Prepare a 4-step cost of production report using the average cost method. Show calculations for the following amounts.

(a)	How many units are in process at May 31?
(b)	What is the unit materials cost for May?
(c)	What is the unit conversion cost for May?
(d)	What is the total cost of units transferred out in May?
(e)	What is the cost of the May 31 inventory?