Learn Exercise 3-5 Shady Company Tutorial

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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

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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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Academics Accounting

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