Florida Tile produces ceramic tiles using two sequential production departments: Tile-Forming and Tile-Finishing. The following information was found for Florida Tile’s first production process, the Tile-Forming Department.

Requirement:

Use the five steps of process costing to calculate the cost that should be assigned to (1) units completed and transferred out and (2) units still in ending work in process inventory.
Then prepare the journal entry needed at month-end to transfer the costs associated with the formed tiles to the next department, Tile-Finishing.

Transcribed Image Text:

FLORIDA TILE TILE-FORMING DEPARTMENT Month Ended May 31 Information about units: Beginning work in process, May 1...... Started in production during May Completed and transferred to Finishing Department during May... Ending work in process, May 31 (25% complete as to direct materials, 55% complete as to conversion cost). Information about costs: Beginning work in process, May 1 (consists of $800 of direct materials cost and $4,000 of conversion costs) Direct materials used in May Conversion costs incurred in May...... 2,000 units 18,000 units 16,000 units 4,000 units $ 4,800 $ 6,000 $32,400