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 19,450 units and transferred 21,000 units of product to the Assembly department. Its 4,900 units of beginning work in process consisted of $21,700 of direct materials and $307,440 of conversion costs. It has 3,350 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month, $416,600 of direct materials costs and $1,823,760 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.

Answer 1

Answer

• All working forms part of the answer
• Requirements

Total Cost to account for:
Cost of beginning WIP	$                    329,140.00
Costs incurred this period	$                2,240,360.00
Total Cost to account for	$                2,569,500.00
Total costs accounted for	$                2,569,500.00
Difference due to rounding cost/unit	$                                      -
Units Reconciliation
Units to account for:
Beginning WIP	4,900
Units started this period	19,450
Total Units to account for	24,350
Total Units accounted for:
Completed & Transferred out	21,000
Ending WIP	3,350
Total Units accounted for	24,350

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	21,000	100%	21,000	100%	21,000
Units of ENDING WIP	3,350	100%	3,350	80%	2,680
Equivalent Units of Production			24,350		23,680
COST per EUP			Material		Conversion
Cost of Beginning WIP			$          21,700.00		$                                307,440.00
Cost incurred during the period			$        416,600.00		$                            1,823,760.00
Total Costs		Costs	$        438,300.00	Costs	$                            2,131,200.00
Equivalent units of production		EUP	24,350	EUP	23,680
Cost per EUP			$            18.00000		$                                   90.00000
TOTAL COST ACCOUNTED FOR
Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
- Direct Materials	21,000	$                    18.00	$        378,000.00
- Conversion	21,000	$                    90.00	$    1,890,000.00
Total Cost transferred Out				$        2,268,000.00
Cost of ending WIP	EUP	Cost per EUP	Total Cost
- Direct Materials	3,350	$                    18.00	$          60,300.00
- Conversion	2,680	$                    90.00	$        241,200.00
Total cost of ending WIP				$            301,500.00
Total costs accounted for					$                            2,569,500.00

Costs to be accounted for:
Cost of Beginning WIP Inventory	$         329,140.00
Cost added to production during the period	$     2,240,360.00
Total Cost to be accounted for	$     2,569,500.00
Costs accounted for as follows:
Cost of units transferred out	$     2,268,000.00
Cost of Ending WIP Inventory	$         301,500.00
Total Cost accounted for	$     2,569,500.00
Difference due to rounding off	$                           -