[The following information applies to the questions displayed below.] Tamar Co.
ID: 2417282 • Letter: #
Question
[The following information applies to the questions displayed below.]
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 21,500 units of product to finished goods inventory. Its 5,000 units of beginning work in process consisted of $21,800 of direct materials and $311,940 of conversion costs. It has 3,400 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month, $451,300 of direct material costs and $2,085,840 of conversion costs were charged to production.
2. Prepare the journal entry dated May 31 to transfer the cost of completed units to finished goods inventory. (Do not round intermediate calculations. Round your finial answer to the nearest whole dollar.)
Record the transfer of goods to finished goods inventory.
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 21,500 units of product to finished goods inventory. Its 5,000 units of beginning work in process consisted of $21,800 of direct materials and $311,940 of conversion costs. It has 3,400 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month, $451,300 of direct material costs and $2,085,840 of conversion costs were charged to production.
2. Prepare the journal entry dated May 31 to transfer the cost of completed units to finished goods inventory. (Do not round intermediate calculations. Round your finial answer to the nearest whole dollar.)
Record the transfer of goods to finished goods inventory.
Date General Journal debit credit May 31Explanation / Answer
Quantity schedule
Balancing figure comes as units accounted for and units to be accounted for are equal always.
Equivalent units calculation
Direct. Con.
Material. Cost
Calculation of cost per equivalent units
Cost of work in process as at may31
Or by short formula
Cost to be accounted for - cost of transferred out
=2870880 - 2537000
= $333880
2)
the journal entry dated May 31 to transfer the cost of completed units to finished goods inventory
Units as at may1 Add during the month (balancing figure) Units to be accounted for Transferred out Units as at may31 Units accounted forRelated Questions
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