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Problem 3-4A Weighted average: Process cost summary, equivalent units, cost estimates LO C2, C3, P4

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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 22,700 units of product to finished goods inventory. Its 3,100 units of beginning work in process consisted of $19,900 of direct materials and $226,440 of conversion costs. It has 2,450 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month, $483,100 of direct material costs and $1,992,960 of conversion costs were charged to production.

Total costs to account for: Total costs to account for: Total costs accounted for Difference due to rounding cost/unit Unit reconciliation: Units to account for: Total units to account for Total units accounted for: Total units accounted for Equivalent units of production (EUP)- weighted average method Units % Materials EUP- Materials % Conversion EUP- Conversion Total units Cost per equivalent unit of production Materials Conversion Total costs Costs Costs ÷ Equivalent units of production EUP EUP Cost per equivalent unit of production Total costs accounted for: Cost of units transferred out: EUP Cost per EUP Total cost Direct materials Conversion Total costs transferred out Costs of ending work in process EUP Cost per EUP Total cost Direct materials Conversion Total cost of ending work in process Total costs accounted for

Answer 1

• Requirement, as asked

Total Cost to account for:
Cost of beginning WIP	$                    246,340.00
Costs incurred this period	$                2,476,060.00
Total Cost to account for	$                2,722,400.00
Total costs accounted for	$                2,722,400.00
Difference due to rounding cost/unit	$                                      -
Units Reconciliation
Units to account for:
Beginning WIP	3,100
Units started this period	22,050
Total Units to account for	25,150
Total Units accounted for:
Completed & Transferred out	22,700
Ending WIP	2,450
Total Units accounted for	25,150

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	22,700	100%	22,700	100%	22,700
Units of ENDING WIP	2,450	100%	2,450	80%	1,960
Equivalent Units of Production			25,150		24,660
COST per EUP			Material		Conversion
Cost of Beginning WIP			$          19,900.00		$                                226,440.00
Cost incurred during the period			$        483,100.00		$                           1,992,960.00
Total Costs		Costs	$        503,000.00	Costs	$                            2,219,400.00
Equivalent units of production		EUP	25,150	EUP	24,660
Cost per EUP			$            20.00000		$                                   90.00000

TOTAL COST ACCOUNTED FOR
Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
- Direct Materials	22,700	$                    20.00	$        454,000.00
- Conversion	22,700	$                    90.00	$    2,043,000.00
Total Cost transferred Out				$        2,497,000.00
Cost of ending WIP	EUP	Cost per EUP	Total Cost
- Direct Materials	2,450	$                    20.00	$          49,000.00
- Conversion	1,960	$                    90.00	$        176,400.00
Total cost of ending WIP				$            225,400.00
Total costs accounted for					$                            2,722,400.00