Question

Required Information Problem 03-4A 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 25,200 units and transferred 26,200 units of product to the Assembly department. Its 3,800 units of beginning work in process consisted of $20,600 of direct materials and $257,940 of conversion costs. It has 2,800 units (100% complete with respect to direct materials and 80% complete with respect to conversion) In process at month-end. During the month, $501,400 of direct materials costs and $2,500,740 of conversion costs were charged to the Forming department. Problem 03-4A Part 2 2. Prepare the journal entry dated May 31 to transfer the cost of units to Assembly. (Do not round Intermediate calculations. Round your final answers to the nearest whole dollar.) View transaction list Journal entry worksheet < 1 Record the transfer of goods to next department. Note: Enter debits before credits. Date General Journal Debit Credit May 31 Work in process inventory-Assembly Work in process inventory-Forming Record entry Clear entry View general journal

Answer 1

Equivalent units:

Material:

= 26,200 + (2,800 X 100%)

= 29,000

Conversion:

= 26,200 + (2,800 X 80%)

= 28,440

Cost per equivalent unit:

Material:

= ($20,600 + $501,400) / 29,000

= $18

Conversion:

= ($257,940 + $2,500,740) / 28,440

= $97

Cost of units transferred:

= 26,200 X ($18 + $97)

= $3,013,000

Date	General Journal	Debit	Credit
May 31	Work in process inventory - Assembly	$3,013,000	-
	Work in process inventory - Forming	-	$3,013,000