Answer:
Tamar Co.
Journal Entry:
May 31: Debit Work in Process (Assembly):
Materials costs $510,600
Conversion costs $2,097,900
Credit Work in Process (Forming) $2,608,500
To transfer the cost of units to the Assembly Department.
Explanation:
a) Data and Calculations:
Units Materials Conversion
Beginning work in process 3,000 100% 80%
Units started in May 21,600
Total units available 24,600
Units transferred out 22,200
Ending work in process 2,400
Equivalent units of production:
Beginning work in process 3,000 0 (0%) 1,800 (60%)
Units started and completed 19,200 19,200 (100%) 19,200 (100%)
Ending work in process 2,400 2,400 (100%) 1,920 (80%)
Equivalent units 21,600 22,920
Cost of production:
Costs incurred during the year $496,800 $2,165,940
Equivalent units 21,600 22,920
Cost per equivalent units $23 $94.50
Allocation of costs:
Units transferred out $510,600 $2,097,900 $2,608,500
($23 * 22,200) ($94.5 * 22,200)
Ending work in process $55,200 $181,440 $236,640
Journal Entry Analysis:
Work in Process (Assembly): Materials costs $510,600 Conversion costs $2,097,900 Work in Process (Forming) $2,608,500
