Question

Required information Problem 03-4A Weighted average: Process cost summary, equivalent units, cost estimates LO C2, C3, P4 (The following information applies to the questions displayed below.) 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 25,200 units and transferred 26,200 units of product to the Assembly department. Its 3,800 units of beginning work in process consisted of $20,600 of direct materials and $257,940 of conversion costs. It has 2,800 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month, $501,400 of direct materials costs and $2,500,740 of conversion costs were charged to the Forming department

Answer 1

B E F A с D 1 Total costs to account for 2 Costs of beginning work in process $ 278,540 3 Costs incurred this period $ 3,002,140 4 Total costs to account for $ 3,280,680 5 Total costs accounted for $ 3,280,680 6 *Difference due to rounding cost/unit $ 7 Unit reconciliation 8 Units to account for 9 Beginning work in process inventory - units 3,800 10 Units started this period 25,200 11 Total units to account for 29,000 12 Total units accounted for 13 Units Completed and transferred out 26,200 14 Ending work in process - units 2,800 15 Total units accounted for 29,000 16 Equivalent Units Of Production (EUP)-Weighted Average Method 17 Units % Materials EUP-Materials % Conversion Eup Conversion 18 Units Completed And Transferred Out 26,200 100% 26,200 100% 26,200 19 Units of ending work in process 2,800 100% 2,800 80% 2,240 20 Total units 29,000 29,000 28,440

Materials $ 20,600 $ 501,400 $ 522,000 costs 29000 EUP $ 18 Conversion $ 257,940 $ 2,500,740 $ 2,758,680 28440 $ 97 costs EUP 21 22 Cost per EUP 23 Cost of beginning work in process 24 Cost incurred this period 25 Total costs 26 Equivalent units of production 27 Cost per Equivalent Unit of Production 28 Total costs accounted for 29 Cost of units transferred out 30 Direct materials 31 Conversion 32 Total costs transferred out 33 Costs of ending work in process 34 Direct materials 35 Conversion 36 Total cost of ending work in process 37 Total costs accounted for EUP EUP Cost per EUP Total cost 26,200 $ 18.00 $ 471,600 26,200 $ 97.00 $ 2,541,400 $ 3,013,000 Cost per EUP Total cost 2,800 $ 18.00 $ 50,400 2,240$ 97.00 $ 217,280 $ 267,680 $ 3,280,680

A B с D F D E 1 Total costs to account for 2 Costs of beginning work in process =20600+257940 3 Costs incurred this period |=501400+2500740 4 Total costs to account for =+B2+B3 5 Total costs accounted for =+E37 6 *Difference due to rounding cost/unit =+B4-B5 7 Unit reconciliation 8 Units to account for 9 Beginning work in process inventory - units 3800 10 Units started this period 25200 11 Total units to account for =+B9+B10 12 Total units accounted for 13 Units Completed and transferred out 26200 14 Ending work in process - units 2800 15 Total units accounted for =+B13+B14 16 Equivalent Units Of Production (EUP)- Weighted Average Method 17 Units % Materials EUP-Materials % Conversion Eup Conversion 18 Units Completed And Transferred Out =+B13 =+B18*C18 =+B18*E18 19 Units of ending work in process =+B14 =+B19*C19 0.8 =+B19*E19 20 Total units =+B18+B19 =+D18+D19 =+F18+F19 1 1 1

Materials 20600 501400 =+D23+D24 =+D20 =+D25/D26 Conversion 257940 2500740 =+F23+F24 =+F20 =+F25/F26 costs EUP costs EUP 21 22 Cost per EUP 23 Cost of beginning work in process 24 Cost incurred this period 25 Total costs 26 Equivalent units of production 27 Cost per Equivalent Unit of Production 28 Total costs accounted for 29 Cost of units transferred out 30 Direct materials 31 Conversion Total costs transferred out 33 Costs of ending work in process 34 Direct materials 35 Conversion 36 Total cost of ending work in process 37 Total costs accounted for EUP =+D18 Cost per EUP Total cost =+D27 =+B30*C30 =+F27 =+B31*C31 =+F18 32 =+D30+D31 EUP =+D19 =+F19 Cost per EUP Total cost =+D27 =+B34*C34 =+F27 =+B35*C35 =+D34+D35 =+E32+E36