Concept explainers
Videos
Problem 20-4A Weighted average:
Tamar Co. manufactures a single product in two departments: Forming and Assembly. All direct materials are added at the beginning of the forming process. Conversion costs are added evenly throughout each process. During May, the Forming department started 21,600 units, and completed and transferred 22,200 units of product to the Assembly department. The Forming department's 3,000 units of beginning work in process consisted of $19,800 of direct materials and $221,940 of conversion costs. It has 2.400 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month, $496,800 of direct materials costs and $2,165,940 of conversion costs were charged to the Forming department.
Required
1. Prepare the Forming department's process cost summary for May using the weighted-average method.
Check (1) EUP for conversion, 24,120
2. Prepare the
(2) Cost transferred out. 12.664.000
Analysis Component
3. The costing process depends on numerous estimates.
a. Identify two major estimates that determine the cost per equivalent unit.
b. Assume management compensation is based on maintaining low inventory amounts. Is management more likely to overestimate or understimate the percentage complete?
Want to see the full answer?
Check out a sample textbook solution
Chapter 20 Solutions
FUND OF ACCT PRIN(LOOSE-LEAF)+ACCESS
- The following beginning and ending inventory levels are planned for next yeararrow_forwardGary receives $51,000 worth of Quantro, Inc., common stock from his late grandmother's estate. Early in the year, he receives a $250 cash dividend. Four months later, he received a 2% stock dividend. Near the end of the year, Gary sells the stock for $55,000. Due to these events only, how much must Gary include in his gross income for the year? Answer thisarrow_forwardCan you solve these general accounting question?arrow_forward
- General Accountingarrow_forwardAnsarrow_forwardGest Inc. has provided the following data for the month of November. The balance in the Finished Goods inventory account at the beginning of the month was $76,500 and at the end of the month was $82,750. The cost of goods manufactured for the month was $389,500. The actual manufacturing overhead cost incurred was $135,500 and the manufacturing overhead cost applied to jobs was $127,500. The adjusted cost of goods sold that would appear on the income statement for November is __.arrow_forward
- Why does measurement attribute selection affect reporting quality? a) Standards fit everything b) Single measures work universally c) Selection wastes time d) Different value bases serve varying information needsarrow_forwardThe number of units it would have to manufacture during tha year would bearrow_forwardAns pleasearrow_forward
Financial & Managerial AccountingAccountingISBN:9781337119207Author:Carl Warren, James M. Reeve, Jonathan DuchacPublisher:Cengage Learning