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. 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.)

Answer 1

Answer

• Requirement 2

	Accounts title	Debit	Credit
May-31	Work in Proces - Assembly	$               2,268,000.00
	Work In Process Inventory - Forming		$       2,268,000.00

• Working

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