Question

Required information [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 1. Prepare the Forming department's process cost summary for May using the weighted average method. $ 250,940 2,581,960 2,832,900 $ Total costs to account for: Costs of beginning work in process Costs incurred this period Total costs to account for Total costs accounted for Difference due to rounding costunit Unit reconciliation: Units to account for:

Answer 1

Total costs to account for
Beginning work in process				250,940
cost added during the year				2,581,960
Total costs to account for				2,832,900
total costs accounted for				2,832,900
Difference due to rounding cost/unit				-
Unit reconciliation:
units to account for
Beginning work in process				3,200
started during the year				22,500
total units to account for				25,700
total units accounted for
completed & transferred				23,200
Ending work in process				2,500
tota units accounted for				25,700
Equivalent units of production (EUP)-weighted average method
				units	%mater	EUP-mate	% CC	EUP-CC
completed & transferred				23,200	100%	23,200	100%	23,200
Ending work in process				2,500	100%	2,500	80%	2000
total units						25,700		25,200
cost per equivalent unit of production						Materials		CC
beginnning work in process						20,000		230,940
cost added during the year o						519,700		2,062,260
total costs					costs	539,700	Costs	2,293,200
Equivalent units of production					EUP	25,700	EUP	25,200
cost per equivalent unit of production						21		91
Total cost accounted for					Cost per	total
cost of units transferred out				EUP	unit	cost
Direct materials				23,200	21	487200
conversion				23,200	91	2111200
total costs transferred out						2598400
cost of ending work in process				EUP	cost per	total cost
Direct materials				2,500	21	52500
conversion				2000	91	182000
total cost of ending work in process						234500
total costs accounted for							2832900
	journal entry
	Account titles & explanations				Debit	Credit
	Finished goods inventory				2598400
	work in process inventory					2598400

1)

The combined costs of direct labor and factory overhead per equivalent unit.

Conversion costs per equivalent unit

2)

Used when materials move continously through a manufacturing process

Materials consumption report

3)

combines units and costs across two periods in computing equivalent units.

weighted-average method

4)

notifies the materials manager to send materials to a production department

materials requisition

5)

holds costs of indirect material until assigned to production

factory overhead account

6)

holds production until products are transferred from production to finished goods

goods in process inventory

(or another department)

account

7)

standardizes partially completed units into equivalent completed units

equivalent units of production