2c

Conversion costs are the combination of direct labor and factory overhead. Assume the conversion costs (see attached) consists of 45% direct labor and the remainder is factory overhead. There is no indirect labor for Tamar Co. What would be the journal entry to record the direct labor incurred (charged/added) to BOTH departments in May?

Forming Cost Forming Costs Factor Assembly Cost Assembly Category (connect) (multiply) Category \"transferred OUT\" N/A Q21 IE Forming 3.177.300.00' Direct Material Costs 599.850.00 1.20 Packaging 719,820.00 Direct Material Costs 599.850.00 0.60 Other DM 359,910.00 Conversion Costs 1,199,100.00 1.50 Conversion 1.799.550.00 Total Costs . Added/Incurred 6'056'580 '00