Questions 5-6 Problem 205A weighted average: Process cost summary, equivalent un
ID: 2463494 • Letter: Q
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Questions 5-6 Problem 205A weighted average: Process cost summary, equivalent units, cost estimates LO C2, ca, p4 [The following information applies to the questions displayed below Tamar Co. manufacturms e single product in one depertment. Al drect meterials are ndded at the beginning of the manufechaing process. Direct labor end overheed are added eventy throughout the process. The company uses merely reporting perods for its worded mmngn process cost accounting. During May, the company completed and tansferred 24400 units of product to firibhed goods inventory ts 3,800 unts of beginning goods in process consisted of $21,600 of drect materials, $167,300 of direct labor, and Strs,HAO of factory on head has 00 urits 000% complete with respect to direct materials complete with respect to direct labor and overhead) in process at month-end. Ater entries to record drect materias, direct Inbor, and overhead for May, the company's Goods in Process inventory eccount foliows May 1 Balanoe 31 Direct materials 31 Direct labor 31 Applied overhead 517,500 1244300 995.440 840,240 2,084,540 3,079,98O References Section Break Problem 20-5A Weighted average: Process cost summary, equivalent units, cost estmates LO C2. C3, P 10.00 points SAMSUNG 3 4 5 6 7Explanation / Answer
Total Equivalent Units = Units transferred + Units in Ending Inventory
Total Equivalent Units = For Material: 24,400 + 3,200 = 27,600
For Direct Labor and O/H = 24,400 + (3,200 x 70%) = 26,640
Total Cost of Material = 21,600 + 517,500 = $539,100
Cost Per Equivalent Units for Direct Material = 539,100 / 27,600 = $19.5326
Total Cost of Conversion = 167,300 + 133,840 + 1,244,300 + 995,440 = $2,540,880
Cost Per Unit = 2,540,880 / 26,640 = $95.37839
Total Cost per Unit = $115
For 24,400 units = 24,400 x 115 = $2,806,000
Journal Entry:
Date Account Title Debit Credit May 31 Finished Goods Inventory 2,806,000 Work In Process 2,806,000Related Questions
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