Question

Tamar Co. manufactures a single product in two departments.All direct materials are added at the beginning of the Forming process...

Required Information 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 24,300 units, and transferred 25,200 units of product to the Assembly department. Its 3,600 units of beginning work in process consisted of $40,320 of direct materials and $1,006,848 of conversion costs. It has 2.700 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month $573.480 of direct materials costs and $2.413.152 of conversion costs were charged to the Forming department. The following additional information is available for the Forming department. Beginning work in process consisted of 3.600 units that were 100% complete with respect to direct materials and 40% complete with respect to conversion • Of the 25,200 units transferred out, 3.600 were from beginning work in process. The remaining 21.600 were units started and completed during May. Assume that Tamar uses the FIFO method to account for its process costing system.

Answer 1

B C D E F A B 1 Total costs to account for: 2 Cost of beginning goods in process $ 1,047,168 3 Costs incurred this period $ 2,986,632 4 Total cost to account for $ 4,033,800 5 Total cost accounted for $ 4,033,800 6 Difference due to rounding cost/unit $ 7 Unit Reconciliation: 8 Units to account for: 9 Beginning gooods in process inventory-units 3,600 10 Units started this period 24,300 11 Total units to account for 27,900 12 Total units accounted for: 13 Units completed and transferred out 25,200 14 Ending goods in process - units 2,700 15 Total units accounted for: 27,900 16 Equivalent units of production (EUP) - FIFO Method: 17 Units % Materials EUP - Materials % Conversion EUP-Conversion 18 Beginning goods in process inventory- units 3,600 0% 60% 2,160 19 Units started and completed this period 21,600 100% 21,600 100% 21,600 20 Ending goods in process- units 2,700 100% 2,700 80% 2,160 21 Total units 24,300 25,920 22 Cost per equivalent unit of production: Materials Conversion

$ $ $ $ Costs 573,480 573,480 Costs 24,300 EUP 23.60 2,413,152 2,413,152 25,920 93.10 EUP $ $ $ $ 1,047,168 EUP Cost per EUP Total cost o $ 23.60 $ 2,160 $ 93.10 $ 201,096 $ 201,096 $ 1,248,264 23 Cost incurred this period 24 Total costs 25 Equivalent units of production 26 Cost per equivalent unit 27 Total cost accounted for: 28 Beginning inventory cost 29 Cost to complete beginning inventory 30 Direct material 31 Conversion 32 Total cost to complete beginning inventory 33 Total cost of units in beginning inventory 34 Cost of units started and completed 35 Direct materials 36 Conversion 37 Total cost of units started and completed 38 Total cost of units transferred out 39 40 Cost of ending work in process 41 Direct materials 42 Conversion 43 Total cost of ending work in process 44 Total cost accounted for EUP Cost per EUP Total cost 21,600 $ 23.60 $ 509,760 21,600$ 93.10 $ 2,010,960 $ 2,520,720 $ 3,768,984 EUP Cost per EUP Total cost 2,700$ 23.60 $ 63,720 2,160 $ 93.10 $ 201,096 $ 264,816 $ 4,033,800

B D F A C E 1 Total costs to account for: 2 Cost of beginning goods in process -40320+1006848 3 Costs incurred this period =573480+2413152 4 Total cost to account for =+B2+B3 5 Total cost accounted for =+E44 6 Difference due to rounding cost/unit =+B4-B5 7 Unit Reconciliation: 8 Units to account for: 9 Beginning gooods in process inventory-units 3600 10 Units started this period 24300 11 Total units to account for =+B9+B10 12 Total units accounted for: 13 Units completed and transferred out 25200 14 Ending goods in process - units 2700 15 Total units accounted for: =+B13+B14 16 Equivalent units of production (EUP) - FIFO Method: Units % Materials EUP - Materials % Conversion 18 Beginning goods in process inventory - units 3600 =100%-100% O =100%-40% 19 Units started and completed this period 21600 1 =+B19*C19 1 20 Ending goods in process- units 2700 =+B20*C20 0.8 21 Total units =+D18+D19+D20 22 Cost per equivalent unit of production: Materials 17 EUP-Conversion =+B18*E18 =+B19*E19 =+B20*E20 =+F18+F19+F20 Conversion 1

573480 2413152 =+F23 Costs =+D23 =+D21 =+D24/D25 Costs EUP EUP =+F21 =+F24/F25 =40320+1006848 EUP =+D18 Cost per EUP Total cost =+D26 =+B30*C30 =+F26 =+B31*C31 =+F18 =+D30+D31 =+E28+E32 23 Cost incurred this period 24 Total costs 25 Equivalent units of production 26 Cost per equivalent unit 27 Total cost accounted for: 28 Beginning inventory cost 29 Cost to complete beginning inventory 30 Direct material 31 Conversion 32 Total cost to complete beginning inventory 33 Total cost of units in beginning inventory 34 Cost of units started and completed 35 Direct materials 36 Conversion 37 Total cost of units started and completed 38 Total cost of units transferred out 39 40 Cost of ending work in process 41 Direct materials 42 Conversion 43 Total cost of ending work in process 44 Total cost accounted for EUP =+D19 =+F19 Cost per EUP Total cost =+D26 =+B35C35 =+F26 =+B36*C36 =+D35+D36 =+E33+E37 EUP Cost per EUP Total cost =+D26 =+B41*C41 =+D20 =+F20 =+F26 =+B42*C42 =+D41+D42 =+E38+E43