FIFO Method

Problem 20-6AA FIFO: Process cost summary; equivalent units; cost estimates LO C3, C4, P4 The following information applies to the questions displayed below.] Tamar Co. manufactures a single product in one department. All direct materials are added at the beginning of the manufacturing process. Direct labor and overhead are added evenly throughout the process. The company uses monthly reporting periods for its weighted average process cost accounting. During May, the company completed and transferred 22,200 units of product to finished goods Inventory. Its 3,000 units of beginning goods in process consisted of $19,800 of direct materials, $123,300 of direct labor, and $98,640 of factory overhead. It has 2,400 units (100% complete with respect to direct materials and 80% complete with respect to direct labor and overhead) in process at month-end. After entries to record direct materials, direct labor, and overhead for May, the company's Goods in Process Inventory account follows. Goods in Process Inventory Date Explanation May. 1 Balance 31 Direct materials 31 Direct labor Acct. No.133 Debit Credit Balance 241,740 496,800 738,540 1,203,300 1,941,840 2,904,480 31 Applied overhead Beginning goods in process consisted of 3,000 units that were 100% complete with respect to direct materials and 40% complete with respect to direct labor and overhead . Of the 22,200 units completed, 3,000 were from beginning goods in process. The remaining 19,200 were units started and completed during May. Assume that Tamar uses the FIFO method to account for its process costing system. Problem 20-6A Part 1 1. Prepare the company's process cost summary for May using the FIFO method, (Round "Cost per EUP" to 2 decimal places.) $ 0 $ 0 Total costs to account for: Costs of beginning goods in process Costs incurred this period Total costs to account for: Total costs accounted for Difference due to rounding costunit Unit reconciliation: Units to account for: Beginning goods in process inventory - units Units started this period Total units to account for Total units accounted for: Units completed and transferred out Ending goods in process- units Total units accounted for 3,000 21,600 24,600 22,200 2.400 % Materials EUP. Materials % Labor EUP. Labor % Overhead EUP. Overhead Equivalent units of production (EUP)- FIFO method Units Beginning goods in process inventory - units 3,000 Units started and completed this period 19,200 Ending goods in process- units 2,400 Total units 24,600 Cost per equivalent unit of production Costs incurred this period Total costs + Equivalent units of production Cost per equivalent unit of production (rounded to 2 decimals) Materials | 496.800l 496,800 0 Costs EUP Labor Overhead 1,203,300 962,640 $ 1.203.300 Costs $ 962.640 0 EUP 0 00 0