Question

1 (Ch 1 - Ch 3) Required information The following information applies to the questions displayed below. Tamar Co. manufactures a single product in one department. All direct materials are added at the beginning of the manufacturing process. Conversion costs are added evenly throughout the process. During May, the company completed and transferred 25,700 units of product to finished goods Inventory. Its 3.700 units of beginning work in process consisted of $20,500 of direct materials and $253,440 of conversion costs. It has 2.750 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month end. During the month, $520.050 of direct material costs and $2.424,960 of conversion costs were charged to production. 1. Prepare the company's process cost summary for May using the weighted average method. Total costs to account Costs of beginning work in process Costs incurred this period 273 900 2,945,010 3.218 910 Total costs to account for Total cost counted for Difference due to rounding cost/unit Unit recone Units to account for: Beginning work in process inventory - units 3.700 Units started this period Total units to account for Total units accounted for: Units completed and transferred out < Prev 10 of 10 Next >

Answer 1

• Requirements

Total Cost to account for:
Cost of beginning WIP	$                    273,940.00
Costs incurred this period	$                2,945,010.00
Total Cost to account for	$                3,218,950.00
Total costs accounted for	$                3,218,950.00
Difference due to rounding cost/unit	$                                      -
Units Reconciliation
Units to account for:
Beginning WIP	3,700
Units started this period	24,750
Total Units to account for	28,450
Total Units accounted for:
Completed & Transferred out	25,700
Ending WIP	2,750
Total Units accounted for	28,450

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	25,700	100%	25,700	100%	25,700
Units of ENDING WIP	2,750	100%	2,750	80%	2,200
Equivalent Units of Production			28,450		27,900
COST per EUP			Material		Conversion
Cost of Beginning WIP			$          20,500.00		$                                253,440.00
Cost incurred during the period			$        520,050.00		$                            2,424,960.00
Total Costs		Costs	$        540,550.00	Costs	$                            2,678,400.00
Equivalent units of production		EUP	28,450	EUP	27,900
Cost per EUP			$            19.00000		$                                   96.00000
TOTAL COST ACCOUNTED FOR
Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
- Direct Materials	25,700	$                    19.00	$        488,300.00
- Conversion	25,700	$                    96.00	$    2,467,200.00
Total Cost transferred Out				$        2,955,500.00
Cost of ending WIP	EUP	Cost per EUP	Total Cost
- Direct Materials	2,750	$                    19.00	$          52,250.00
- Conversion	2,200	$                    96.00	$        211,200.00
Total cost of ending WIP				$            263,450.00
Total costs accounted for					$                            3,218,950.00

	Accounts title	Debit	Credit
May-31	Finished Goods Inventory	$               2,955,500.00
	Work In Process Inventory		$       2,955,500.00
	(to record transfer of cost from WIP to Finished Goods)