Problem 16-5AA 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. Conversion costs are added evenly throughout the process. During May, the company completed and transferred 28,200 units of product to finished goods inventory. Its 4,200 units of beginning work in process consisted of $73,980 of direct materials and $1,308,684 of conversion costs. It has 3,000 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month, $656,100 of direct material costs and $2,669,316 of conversion costs were charged to production.

• Beginning work in process consisted of 4,200 units that were 100% complete with respect to direct materials and 40% complete with respect to conversion.
• Of the 28,200 units completed, 4,200 were from beginning work in process. The remaining 24,000 were units started and completed during May.

Assume that Tamar uses the FIFO method to account for its process costing system.

Problem 16-5A Part 1

1. Prepare the companys process cost summary for May using the FIFO method. (Round "Cost per EUP" to 2 decimal places.)

Total costs to account for:
Total costs to account for:
Total costs accounted for
Difference due to rounding cost/unit
Unit reconciliation:
Units to account for:
Total units to account for
Total units accounted for:
Total units accounted for
Equivalent units of production (EUP)- FIFO method
	Units	% Materials	EUP- Materials	% Conversion	EUP- Conversion
Total units
Cost per equivalent unit of production			Materials		Conversion
Total costs		Costs		Costs
Equivalent units of production		EUP		EUP
Cost per equivalent unit of production (rounded to 2 decimals)
Total costs accounted for:
Beginning Inventory Cost:
Cost to complete beginning inventory	EUP	Cost per EUP	Total cost
Direct materials
Conversion
Total cost to complete beginning inventory
Total cost of units in beginning inventory
Cost of units started and completed	EUP	Cost per EUP	Total cost
Direct materials
Conversion
Total cost of units started and completed
Total cost of units transferred out
Costs of ending work in process	EUP	Cost per EUP	Total cost
Direct materials
Conversion
Total cost of ending work in process
Total costs accounted for

Problem 16-5A Part 2

2. Prepare the journal entry dated May 31 to transfer the cost of completed units to finished goods inventory.

• Record the transfer of goods to finished goods inventory.