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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 31,200 units of product to finished goods inventory. Its 4,800 units of beginning work in process consisted of $21,600 of direct materials and $302,940 of conversion costs. It has 3,300 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month, $564,900 of direct material costs and $3,148,740 of conversion costs were charged to production.

1. Prepare the company’s process cost summary for May using the weighted-average method.
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.)

Answer 1

UNITS TO ACCOUNT FOR:
Beginning Work in Process units					4,800
Add: Units Started in Process					29,700
Total Units to account for:					34,500
UNITS TO BE ACCOUNTED FOR:
Units completed and transferred out					31,200
Ending Work in Process					3,300
Total Units to be accounted for:					34,500
Equivalent Units:
			UNITS	Material Cost		Conversion
				% Completion	Units	% Completion	Units
Units complted			31200	100%	31,200	100%	31,200
Ending Work in Process			3300	100%	3,300	80%	2,640
Total Equivalent units			34500		34,500		33,840
TOTAL COST TO ACCOUNT FOR:
				Material		Conversion
Beginning work in Process				21,600		302,940
Cost Added during May				564,900		3,148,740
Total Cost to account for:				586,500		3,451,680
Equivalent Units				34,500		33,840
Cost per Equivalent unit				17		102
TOTAL COST ACCOUNTED FOR:
Units completed and Transferred out (31200 units)
				Equivalent unit	Cost per EU	Total Cost
Material				31,200	17	530400
Conversion Cost				31,200	102	3182400
Total Cost of Units completed and transferred out:						3712800
Ending Work in process (3300 units)
				Equivalent unit	Cost per EU	Total Cost
Material				3,300	17	56100
Conversison Cost				3,300	102	336600
Total cost of Ending Work in process:						392,700
Journal entry for transferred:
Finished goods inventory			3712800
Work in process inventory				3712800