Ch 16 Connect Assignment 6 18 Required information The folow

Ch 16 Connect Assignment 6 18 Required information The folowing information applies to me questions displayed below Tamar Co manufectures a single product in one department All direct materials are added at the beginning of the turing process. Conversion coss ane added evemly throughout the precess. During May, the compary completd and transfemed 22.200 units of product to finished goods invensory. ts 3,000 units of beginning work in process consihted of $79800 of direct materiels and $221940 of cenversion costs has 2.400 units (n complete wim espect to drect materials and B % complete with respect to convenor, in process at motend ongre monn s496 80eof drect material costs and $2,965,940 of convension costs were charged to production 1. Prepare the company\'s process cost summary for May uning the weighted-average methocd

Solution

Part 1 Total costs to account for: Cost of beginning work in process $         241,740 Costs incurred this period          2,662,740 Total costs to account for          2,904,480 Total costs accounted for          2,904,480 Difference due to rounding cost/unit                         -   Unit Reconciliation: Units to account for: Beginning goods 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                22,200 Ending goods in process ­ units                  2,400 Total units accounted for                24,600 Equivalent units of production (EUP)­ weighted average method Units % Materials EUP­ Materials % Conversion EUP­ Conversion Units completed and transferred out                22,200 100%                  22,200 100%                      22,200 Ending goods in process ­ units                  2,400 100%                     2,400 80%                        1,920 Total units                24,600                  24,600                      24,120 Cost per equivalent unit of production Materials Conversion Cost of beginning goods in process $              19,800 $               221,940 Costs incurred this period                496,800                2,165,940 Total costs Costs $            516,600 Costs $            2,387,880 ÷ Equivalent units of production EUP                  24,600 EUP                      24,120 Cost per equivalent unit of production                           21                              99 Total costs accounted for: Cost of units transferred out EUP Cost per EUP Total cost Direct materials                22,200 $                 21 $            466,200 Conversion                22,200 $                 99 $        2,197,800 Total costs transferred out $     2,664,000 Costs of ending goods in process EUP Cost per EUP Total cost Direct materials                  2,400 $                 21 $              50,400 Conversion                  1,920 $                 99 $            190,080 Total cost of ending goods in process $         240,480 Total costs accounted for $     2,904,480 Part 2 May 31 Finished Goods Inventory 2,664,000       Goods in Process Inventory 2,664,000    Transfer of goods to finished inventory.