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 21,600 units, and transferred 22,200 units of product to the Assembly department. Its 3,000 units of beginning work in process consisted of $19,800 of direct materials and $221,940 of conversion costs. It has 2,400 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month, $496,800 of direct materials costs and $2,165,940 of conversion costs were charged to the Forming department 2. Prepare the journal entry dated May 31 to transfer the cost of units to Assembly. 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 Record entry Clear entry View general journal

Answer 1

Equivalent unit of material = 22200+(2400*100%) = 24600

Equivalent unit of conversion = 22200+(2400*80%) = 24120

Cost per equivalent unit of material = (19800+496800)/24600 = 21

Cost per equivalent unit of conversion = (221940+2165940)/24120 = 99

Journal entry

Date	General Journal	Debit	Credit
May 31	Work in process-Assembly Dept (120*22200)	2664000
	Work in process-Forming Dept		2664000