Fantasia Company produces large quantities of a standardized product. The following information is available for its production activities for May.

Additional information about units and costs of production activities follows.

During May, 30,000 units of finished goods are sold for $30 cash each. Cost information regarding finished goods follows.
Beginning finished goods inventory . . . . . . . . . $ 74,200
Cost transferred in from production . . . . . . . . . 195,520
Cost of goods sold . . . . . . . . . . . . . . . . . . . . . . (225,000)
Ending finished goods inventory . . . . . . . . . . . $ 44,720

Required
1. Prepare journal entries dated May 31 to record the following May activities:
(a) Purchase of raw materials,
(b) Direct materials usage,
(c) Indirect materials usage,
(d) Factory payroll costs,
(e) Direct labor costs used in production,
(f) Indirect labor costs,
(g) Other overhead costs'credit Other Accounts,
(h) Overhead applied,
(i) Goods transferred to finished goods, and
(j) Sale of finished goods.
2. Prepare a process cost summary report for this company, showing costs charged to production, unit cost information, equivalent units of production, cost per EUP, and its cost assignment and reconciliation.
Analysis Component
3. This company provides incentives to its department managers by paying monthly bonuses based on their success in controlling costs per equivalent unit of production. Assume that production overestimates the percentage of completion for units in ending inventory with the result that its equivalent units of production in ending inventory for May are overstated. What impact does this error have on bonuses paid to the managers of the production department? What impact, if any, does this error have on these managers' Junebonuses?

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Raw materials Beginning inventory.. Raw materials purchased (on credit)10,560 Direct materials used ..(98,560) Factory overhead incurred Indirect materials used ·.. . . $20,280 Indirect labor used .18,160 Other overhead costs17.216 Total factory overhead incurred $55,656 Factory overhead applied $16,000 (20.280) Ending inventory Factory payroll ....$ 7.720 (90% of direct labor cost) Total factory overhead applied. $55,656 $61840 ...18,160 Total payroll cost (paid in cash) . . . .. . . $ 80,000 Units Beginning goods in process inventory Started . ..-.. Ending goods in process inventory Costs 8,000 Beginning goods in process inventory .24,000 6,000 Direct materials . $2,240 1410 Direct labor Factory overhead_.. . Direct materials added ..._.. . Direct labor added Overhead applied (90% of direct labor) . . . lotal costs Ending goods in process inventory 1269 4.919 98.560 61.840 55.656 Status of ending goods in process inventory Materials-Percent complete .. . Labor and overhead-Percent complete 100% 25% .. S 25.455