Tamar Company manufactures a single product in two departments: Forming and Assembly. Information for the Forming process for May follows. Direct Materials Conversion Units Beginning work in process inventory Units started this period 4,350 Percent Percent Complete Complete 100% 40% 31,320 Units completed and transferred out Ending work in process inventory 32,190 3,480 100% 80% Beginning work in process inventory Direct materials Conversion Costs added this period Direct materials Conversion Total costs to account for $ 28,710 321,813 $350,523 720,360 3,140,613 3,860,973 $ 4,211,496
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Tamar Company manufactures a single product in two departments: Forming and Assembly. Information for the Forming
process for May follows.
Direct
Materials Conversion
Units
Beginning work in process inventory
Units started this period
4,350
Percent Percent
Complete Complete
100%
40%
31,320
Units completed and transferred out
32,190
Ending work in process inventory
3,480
100%
80%
Beginning work in process inventory
Direct materials
Conversion
Costs added this period
Direct materials
$ 28,710
321,813
$ 350,523
Conversion
720,360
3,140,613
3,860,973
Total costs to account for
$ 4,211,496
Required:
1. Prepare the Forming department's production cost report for May using the weighted average method.
2. Prepare the May 31 journal entry to transfer the cost of units from Forming to Assembly.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc41c3e22-76c2-4093-8a6e-e1df0745dffe%2Fd0f8e86a-16a2-4f2d-8e1b-d5dc5df8931f%2Fof7kt1g_processed.png&w=3840&q=75)
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