Question

Saved Problem 16-4A Weighted average: Process cost summary, equivalent units, cost estimates LO C2, C3, P4 [The following information applies to the questions displayed below.) Tamar Co. manufactures a single product in two departments. All direct materials are added at the beginning of the Forming process. Conversion costs are added evenly throughout the process. During May, the Forming department started 21,700 units and transferred 23,500 units of product to the Assembly department. Its 5,400 units of beginning work in process consisted of $17,300 of direct materials and $329,940 of conversion costs. It has 3,600 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month, $497,600 of direct materials costs and $2.519.100 of conversion costs were charged to the Forming department. Problem 16-4A Part 1 1. Prepare the Forming department's process cost summary for May using the weighted average method. Total costs to account for: Costs of beginning work in process Cost of ending work in process Total costs to account for: Total costs accounted for Difference due to rounding cost/unit Unit reconciliation: Units to account for: Total units to account for

Answer 1

	Equivalent Units of Production-Weighted Average
		Units	% materials	EUP-Materials	% Conversion	EUP-Conversion
	Units completed and transferred out
	Units in the ending Work in process inventory	3600	100%	3600	80%	2880
	Units completed and transferred out	23500	100%	23500	100%	23500
	Equivalent units of production	27100		27100		26380
	Equivalent Units of Production-Weighted Average
		Units	% materials	EUP-Materials	% Conversion	EUP-Conversion
	Units completed and transferred out	23500	100%	23500	100%	23500
	Units in the ending Work in process inventory	3600	100%	3600	80%	2880
	Equivalent units of production	27100		27100		26380
	Cost per Equivalent units of production
				Materials		Conversion
	Cost of beginning Inventory			$          17,300.00		$       3,29,940.00
	Cost incurred this period			$      4,97,600.00		$    25,19,100.00
	Total cost=(A)		Costs	$      5,14,900.00	Costs	$    28,49,040.00
	Equivalent units of production=(B)		EUP	27100	EUP	26380
	Cost per Equivalent units=(A)/(B)			$                  19.00		$                108.00
	Total Costs to account for:
	Direct Material-Current Period	$    4,97,600.00
	Direct Materials-Beginning Inventory	$       17,300.00
	Conversion Cost-Current Period	$ 25,19,100.00
	Conversion cost-Beginning Inventory	$    3,29,940.00
	Total Costs to account for:	$ 33,63,940.00
	Total cost accounted for	$ 33,63,940.00
	Difference	0
	Cost Assignment & Reconciliation
	Cost of units transferred out	EUP	Cost per EUP	Total cost
	Direct Material	23500	$                        19.00	$      4,46,500.00
	Conversion	23500	$                      108.00	$    25,38,000.00
	Total cost transferred out				$ 29,84,500.00
	Cost of ending Work in Process
	Direct Material	3600	$                        19.00	$          68,400.00
	Conversion	2880	$                      108.00	$      3,11,040.00
					$    3,79,440.00
	Total cost to account for				$ 33,63,940.00
	Journal Entry
	Finished Goods Inventory	$ 29,84,500.00
	To Work in Process Inventory		$          29,84,500.00
	(Being amount of Work in Process transferred to Finished Good)