Question

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 24,750 units and transferred 25,700 units of product to the Assembly department. Its 3,700 units of beginning work in process consisted of $20,500 of direct materials and $253,440 of conversion costs. It has 2,750 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month, $520,050 of direct materials costs and $2,424,960 of conversion costs were charged to the Forming department.

Problem 20-4A Part 1

1. Prepare the Forming department's process cost summary for May using the weighted-average method.

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

• [1]

Total Cost to account for:
Cost of beginning WIP	$                    273,940.00
Costs incurred this period	$                2,945,010.00
Total Cost to account for	$                3,218,950.00
Total costs accounted for	$                3,218,950.00
Difference due to rounding cost/unit	$                                      -
Units Reconciliation
Units to account for:
Beginning WIP	3,700
Units started this period	24,750
Total Units to account for	28,450
Total Units accounted for:
Completed & Transferred out	25,700
Ending WIP	2,750
Total Units accounted for	28,450

EUP - Weighted Average Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units TRANSFERRED	25,700	100%	25,700	100%	25,700
Units of ENDING WIP	2,750	100%	2,750	80%	2,200
Equivalent Units of Production			28,450		27,900
COST per EUP			Material		Conversion
Cost of Beginning WIP			$          20,500.00		$                                253,440.00
Cost incurred during the period			$        520,050.00		$                            2,424,960.00
Total Costs		Costs	$        540,550.00	Costs	$                            2,678,400.00
Equivalent units of production		EUP	28,450	EUP	27,900
Cost per EUP			$            19.00000		$                                   96.00000
TOTAL COST ACCOUNTED FOR
Cost of Units Transferred Out	EUP	Cost per EUP	Total Cost
- Direct Materials	25,700	$                    19.00	$        488,300.00
- Conversion	25,700	$                    96.00	$    2,467,200.00
Total Cost transferred Out				$        2,955,500.00
Cost of ending WIP	EUP	Cost per EUP	Total Cost
- Direct Materials	2,750	$                    19.00	$          52,250.00
- Conversion	2,200	$                    96.00	$        211,200.00
Total cost of ending WIP				$            263,450.00
Total costs accounted for					$                            3,218,950.00

• [2]

	Accounts title	Debit	Credit
May-31	Work in Process - Assembly	$               2,955,500.00
	Work In Process Inventory - Forming		$       2,955,500.00