The Tiffenex Company manufactures reproductions of expensive earrings. Tiffenex uses the standard-costing method of process costing to account for production of earrings. All materials are added at the beginning of production. The costs and output of earrings (pairs) for May 2020 are:

Required

1. Compute equivalent units for direct materials and conversion costs. Show physical units of earrings (pairs) in the first column of your schedule.

2. Compute the total standard costs of earrings (pairs) transferred out in May and the total standard costs of the May 31 inventory of work in process.

3. Compute the total May variances for direct materials and conversion costs.

4. Prepare summarized journal entries to record both actual costs and standard costs for direct materials and conversion costs, including variances for both direct materials and conversion costs.

Transcribed Image Text:

Work in process, beginning Started during May Completed and transferred out Work in process, ending Standard cost per unit Costs added during May Physical Units 8,000 72,000 75,000 5,000 Percent Completion for Conversion Costs 30% 80% Direct Materials $ 16,000 $ 2.00 $145,200 Conversion Costs $ 7,200 $ 3.00 $226,500