Tamar Co. manufactures a single product in two departments. All direct materials are added at the beginning of the Forming process. Conversion costs are added evenly throughout the process. During May, the Forming department started 29,250 units and transferred 30,700 units of product to the Assembly department. Its 4,700 units of beginning work in process consisted of $21,500 of direct materials and $298,440 of conversion costs. It has 3,250 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month, $521,700 of direct materials costs and $3,031,560 of conversion costs were charged to the Forming department. 1. Prepare the Forming department's process cost summary for May using the weighted-average method. $ 319,940 3,553,260 $ 3,873,200 3,873,200 $ 0 Total costs to account for: Costs of beginning work in process Costs incurred this period Total costs to account for Total costs accounted for Difference due to rounding cout/unit Unit reconciliation: Units to account for: Beginning work in process inventory - units Units started this period Total units to account for Total units accounted for: Units completed and transferred out Ending work in process units Total units accounted for O 4,700 29,250 33,950 >> 30,700 3.250 33.950 Required information CITY WUIN II PIUS - J.COM Total units accounted for 33,950 Equivalent units of production (EUP)- weighted average method Units % Materials EUP- Materials 30,700 30,700 3,250 33,950 100% 100% % Conversion 100% 80% 3,250 33,950 Materials 21,500 EUP. Conversion 30,700 2,600 33,300 Conversion $ 298,440 3,031,560 IS 3,330,000 33,300 $ 100.00 $ Costs $ 521,700 543,200 33,950 Costs EUP EUP $ 16.00 Units completed and transferred out Ending work in process - units Total units Cost per equivalent unit of production Costs of beginning work in process Costs incurred this period Total costs + Equivalent units of production Cost per equivalent unit of production Total costs accounted for: Cost of units transferred out Direct materials Conversion Total costs transferred out Costs of ending work in process Direct materials Conversion Total cost of ending work in process Total costs accounted for EUP Cost per 30,700 IS Total cost EUP 16.00 $ 491,200 100.00 3,070,000 30,700 $ $ 3,561,200 EUP Cost per Total cost EUP 16.00 $ $ 52.000 3,250 2,600 $ 100.00 260,000 312.000 $ 3,873,200 Use the provided information and your work from Questions 10 and 11 from HW3.1 for Tamar Co. to complete the requirements for the project. Remember that Tamar Co. manufactures a product in two departments, Forming and Assembly. The company uses TWO Work-in-Process inventory accounts to track costs for each department. Once the product is completed in the Forming department, costs are transferred out of WIP-Forming and into WIP-Assembly. Use these Inventory T-accounts for Tamar Co. for May as directed in the requirements below. WIP-Forming WIP-Assembly Raw Material Inventory Bal 6/1 120,000 Finished Goods Inventory Bal 6/1 -0- Bal 6/30 98,000 Bal 6/30 -0- 1) Accounting for first department: For the FORMING Department. Use the information "given" in CONNECT to perform the following: a) Include May's beginning account balance for WIP-Forming in the T account above. b) Write the journal entry to record the Direct Material requested and charged to the Forming Department during May, c) Assume 45% of the Conversion costs are direct labor, and the remainder is factory overhead. Write the journal entry to record the wages charged to the Forming Department in May. d) Write the journal entry to record the overhead applied to the Forming Department for May. Remember, conversion costs are direct labor and overhead. e) Post the journal entries from b) c) and d) above to the T-accounts above. 1) Post the journal entry to record the costs for the items completed and transferred out of Forming Department and moved added to Assembly Department. This JE should be from Question 11 of HW3.1. on CONNECT g) Determine the ending balance for WIP-Forming. The ending balance should equal the dollar value in the row "total cost of ending work in process" as calculated in Question 11. Check that it does. Information for Second Department: The requirements below relate to May activity in the SECOND department, (ASSEMBLY Department, the department AFTER Forming that was analyzed on CONNECT). In the Assembly department, the product is assembled and packaged into cartons or selling. The packaging container that is used for the product is a significant cost component and is utilized when the product is 80% complete within the Assembly department. Because of its significance, Tamar Co. treats the Packaging as a separate cost category for accounting. The assembly department's beginning inventory units were 90% complete and included $200,000 of packaging costs. The ending inventory for the assembly department was considered 65% complete and did not include any packaging costs (zero percent complete for packaging costs). Various fasteners and other direct material are added earlier in the assembly process. Beginning inventory units were considered 90% complete with respect to other direct material costs and 70% complete at the end of May. Conversion costs are added throughout the assembly process such that units in beginning inventory were 90% complete and ending inventory was 65% complete with respect to conversion costs. The Assembly department will have a total of 4 cost categories: Packaging, Other Direct Material, Conversion and "Forming or Transferred in" costs. The transferred in costs are costs that were incurred during the Forming Process before items were brought to Assembly. These items are complete" with respect to the Forming process BUT NOT complete with respect to Assembly process. You will now analyze the Assembly Department activity for the month of May. The following information pertains to the operations of the Assembly Department for the month of May. 2) Accounting for second department: UNITS Complete the unit reconciliation for the assembly department using the information provided below. The table is similar to the table used in Q11. You may want to use Q11 as a reference. Only the pale blue cells need to be completed. Assembly - Unit Reconciliation Beginning Work-in-Process Units transferred from Forming Department Total units to account for Units completed and transferred to finished Goods Inventory Units in ending Work-in-Process Total units accounted for Calculate (Add) Calculate "to account for" a) Tamar Co. began the month with production units in the assembly department equal to 120% of the units that were in forming department at the beginning of the month. Use Forming beginning units times 1.20 to determine Assembly beginning units. Include units in the table above. b) Include the number of units completed and transferred out" from the Forming department as given in connect as the units transferred from Forming Department" in the table above. c) Calculate the "total units to account for. This will equal the total units accounted for". Include the number of units in both places in the table above. d) Tamar Co. ending May with production units in the assembly department equal to 80% of the units that were in the forming department at the end of the month. Use Forming ending units times 0.80 to determine Assembly ending units. Include this in the table above. e) Calculate the number of units that were completed in the Assembly department and transferred to finished goods inventory during May. Include in the table above