Tamar Co. manufactures a single product in one department. All direct materials are added at the beginning of the manufacturing process. Direct labor and overhead are added evenly throughout the process. The company uses monthly reporting periods for its weighted-average process cost accounting. During May, the company completed and transferred 22,200 units of product to finished goods inventory. Its 3,000 units of beginning goods in process consisted of $19,800 of direct materials, $123,300 of direct labor, and $98,640 of factory overhead. It has 2,400 units (100% complete with respect to direct materials and 80% complete with respect to direct labor and overhead) in process at month-end. After entries to record direct materials, direct labor, and overhead for May, the company's Goods in Process Inventory account follows.
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Goods in Process Inventory |
|
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Acct. No.133 |
| Date |
Explanation |
Debit |
Credit |
Balance |
| May. 1 |
Balance |
|
|
241,740 |
| 31 |
Direct materials |
496,800 |
|
738,540 |
| 31 |
Direct labor |
1,203,300 |
|
1,941,840 |
| 31 |
Applied overhead |
962,640 |
|
2,904,480 |
|
Prepare the company's process cost summary for May using the weighted-average method
Total Costs to account for:
Costs of beggining goods in proces ______
Costs incurred this period _______
Untit Reconciliation:
Units to account for :
Beggining goods in process inventory (units) ______
Units Started this period _______
Total units accounted for:
Units Completed and transferred out _______
Ending goods in process units ______
Equivalent units of production:
Beggining goods in process inventory units ___ , % materials___,% labor ___, % Overhead___
total units to account for units ___, %materials___, %labor ____
EUP: materials___, labor___, Overhead___
Costs of units transferred out:
Direct Materials, direct labor, factory overhead (EUP___) (Cost per EUP)
Costs of ending goods in process
Direct Materials (EUP___) , Direct Labor (EUP__), Factory overhead (EUP__)
total costs of ending goods in process ___
total costs accounted for _____
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- Record the transfer of goods to finished goods inventory.