Problem 16-5AA FIFO: Process cost summary; equivalent units; cost estimates LO C3, C4, P4

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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 company's 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 forDifference due to rounding cost/unitUnit reconciliation:Units to account for:Total units to account forTotal units accounted for:Total units accounted forEquivalent units of production (EUP)- FIFO methodUnits% MaterialsEUP- Materials% ConversionEUP- ConversionTotal unitsCost per equivalent unit of productionMaterialsConversionTotal costsCostsCosts Equivalent units of productionEUPEUPCost per equivalent unit of production (rounded to 2 decimals)Total costs accounted for:Beginning Inventory Cost:Cost to complete beginning inventoryEUPCost per EUPTotal costDirect materialsConversionTotal cost to complete beginning inventoryTotal cost of units in beginning inventoryCost of units started and completedEUPCost per EUPTotal costDirect materialsConversionTotal cost of units started and completedTotal cost of units transferred outCosts of ending work in processEUPCost per EUPTotal costDirect materialsConversionTotal cost of ending work in processTotal 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.