Tamar Co. manufactures a single product in one department. All direct materials are added at the beginning of the manufacturing process. Conversion costs are added evenly throughout the process.

Tamar Co. manufactures a single product in one department. All direct materials are added at the beginning of the manufacturing process. Conversion costs are added evenly throughout the process. During May, the company completed and transferred 27,700 units of product to finished goods inventory. Its 4,100 units of beginning work in process consisted of $20,900 of direct materials and $271,440 of conversion costs. It has 2,950 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month, $592,100 of direct material costs and $2,734,560 of conversion costs were charged to production.

 

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