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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 22,200 units of product to finished goods inventory. Its 3,000 units of beginning work in process consisted of $19,800 of direct materials and $221,940 of conversion costs. It has 2,400 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month, $496,800 of direct material costs and $2,165,940 of conversion costs were charged to production.

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

Total costs to account for:Total costs to account for:Total costs accounted forDifference due to rounding cost/unitUnit reconciliation:Units to account for:Total units to account forTotal units accounted for:Total units accounted forEquivalent units of production (EUP)- weighted average methodUnits% MaterialsEUP- Materials% ConversionEUP- ConversionTotal unitsCost per equivalent unit of productionMaterialsConversionTotal costsCostsCosts÷ Equivalent units of productionEUPEUPCost per equivalent unit of productionTotal costs accounted for:Cost of units transferred out:EUPCost per EUPTotal costDirect materialsConversionTotal costs transferred outCosts of ending work in processEUPCost per EUPTotal costDirect materialsConversionTotal cost of ending work in processTotal costs accounted for

Answer 1

Total costs to account for:
Costs of beginning work in process	241740
Costs incurred this period	2662740
Total costs to account for:	2904480
Total costs accounted for	2904480
Difference due to rounding cost/unit	0
Unit reconciliation:
Units to account for:
Beginning work in process inventory - units	3000
Units started this period	21600
Total units to account for	24600
Total units accounted for:
Units completed and transferred out	22200
Ending work in process - units	2400
Total units accounted for	24600

Equivalent units of production (EUP) - weighted average method
	Units	% Materials	EUP-Materials	% Conversion	EUP-Conversion
Units completed and transferred out	22200	100%	22200	100%	22200
Ending work in process - units	2400	100%	2400	80%	1920
Total units			24600		24120
Cost per equivalent unit of production			Materials		Conversion
Cost of beginning work in process			19800		221940
Costs incurred this period			496800		2165940
Total costs		Costs	516600	Costs	2387880
÷ Equivalent units of production		EUP	24600	EUP	24120
Cost per equivalent unit of production			21.00		99.00

Total costs accounted for:
Cost of units transferred out	EUP	Cost per EUP	Total cost
Direct materials	22200	21.00	466200
Conversion	22200	99.00	2197800
Total costs transferred out				2664000
Costs of ending work in process	EUP	Cost per EUP	Total cost
Direct materials	2400	21.00	50400
Conversion	1920	99.00	190080
Total cost of ending work in process				240480
Total costs accounted for				2904480