Required information
[The following information applies to the questions displayed below.]
Tamar Company manufactures a single product in two departments: Forming and Assembly. Information for the Forming
process for May follows.
Beginning work in process inventory
Units started this period
Units completed and transferred out
Ending work in process inventory
Beginning work in process inventory
Direct materials
Conversion
Costs added this period
Direct materials
Conversion
Total costs to account for
Units
6,450
46,440
47,730
5,160
Direct
Materials
Percent
Complete
100%
1,068,120
4,656,771
100%
Conversion
Percent
Complete
40%
$ 42,570
477,171 $ 519,741
5,724,891
$ 6,244,632
80%
Assume that Tamar uses the FIFO method of process costing. The units started and completed for may total 19,200.
Required:
1. Prepare the Forming department's production cost report for May using FIFO.
2. Prepare the May 31 journal entry to transfer the cost of units from forming to Assembly.
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