The Problem: E3-5 Shady Company
In Shady Company, materials are entered at the beginning of each process. Work in process inventories, with the percentage of work done on conversion costs, and production data for its Sterilizing Department in selected months during 2017 are as follows:
| Month | Transferred Out | Units | Conversion |
| Jan | 11,100 | 2,780 | 62% |
| March | 13,800 | 3,900 | 30% |
| May | 15,300 | 8,010 | 80% |
| July | 10,100 | 1,710 | 46% |
Solution Part 1: Beginning Work in Progress
Solving the first part of the Shady Company problem requires you to simply enter the started in production and and total units. Based on the problem data, the beginning work in progress will always be zero. Note: It is recommended that you unlock this lesson to access the EXCEL formulas for this problem.
| January | May | |
| Beginning Work in Progress | 0 | 0 |
| Started into Production | 13,880 | 23,310 |
| Total Units | 13,880 | 23,310 |
| Units Accounted For | ||
| Transferred Out | 11,100 | 15,300 |
Setting up the Problem in Excel
This is how you should setup the E3-5 problem in excel. If you unlock this lesson, the spreadsheet has all formulas and solutions included.
Full Shady Company Work In Progress Table
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Excel Spreadsheet with Formulas
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