Question

Required Information [The following information applies to the questions displayed below) Tamar Co. manufactures a single product in one department. All direct materials are added at the beginning of the manufacturing process. Conversion costs are added evenly throughout the process. During May, the company completed and transferred 24.700 units of product to finished goods inventory. Its 3,500 units of beginning work in process consisted of $20,300 of direct materials and $244.440 of conversion costs. It has 2,650 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month. $636,100 of direct material costs and $2.276,640 of conversion costs were charged to production. 2. Prepare the journal entry dated May 31 to transfer the cost of completed units to finished goods inventory. (Do not round Intermediate calculations. Round your final answers to the nearest whole dollar) View transaction list View journal entry worksheet No Date General Journal Debit Credit 1 May 31 Finished goods inventory Work in process inventory

Answer 1

Equivalent unit of material = 24700+2650 = 27350

Equivalent unit of conversion = 24700+(2650*80%) = 26820

Cost per equivalent unit of material = (20300+636100)/27350 = 24

Cost per equivalent unit of conversion = (244440+2276640)/26820 = 94

No	Date	General Journal	Debit	Credit
1	May 31	Finished goods inventory (24+94)*24700	2914600
		Work in process inventory		2914600