Question

Required information 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 22,500 units and transferred 23,200 units of product to the Assembly department Its 3,200 units of beginning work in process consisted of $20,000 of direct materials and $230,940 of conversion costs. It has 2,500 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month, $519,700 of direct materials costs and $2,062,260 of conversion costs were charged to the Forming department

Answer 1

20000+230940 519700+2062260 Total Cost to account for Cost of Beginning work in process Cost incurred this period Total Cost to account for Total Cost to account for Difference due to rounding coat/unit $ $ $ $ 250,940 2,581,960 2,832,900 2,832,900 $ Unit Reconcilliation: Units to be accounted for :- Beginning work in process Started into Production Total Units Accounted for 3200 given 22500 given 25700 Units to be accounted for:- Completed & Transferred out Ending work in Process Total Units Accounted for 23200 given 2500 given 25700 Equivalent units of production-Weighted Average Method EUP- % Material Material EUP- Conversion Units Conversion Units to be accounted for:- Units Completed & transferred out Units of Ending work in Process Equivalent units of production 232001 2500 25700 100% 100% 232001 2500 25700 100% 80% 23200 2000 25200 Cost Per EUP Cost of Beginning work in process Cost incurred this period Total Cost Equivalent units of productiom Cost per Equivalent unit Material $ 20,000 $ 519,700 $ 539,700 25700 $ 21 Conversion $ 230,940 given $ 2,062,260 given $ 2,293,200 25200 calculated above $ 91 Divide Cost Assignment & Reconcilliation Cost transferred out Direct Material Conversion Total Transferred out Cost per EUP EUP Total Cost 23200 $ 21 $ 487,200 23200 $ 91 $2,111,200 $ 2,598,400 EUP Cost of Ending work in process Direct Material Conversion Total ending work in process Total cost Accounted for Cost per EUP Total Cost 2500 $ 21 $ 52,500 2000 $ 91 $ 182,000 $ 234,500 $ 2,832,900