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 23,700 units of product to finished goods inventory. Its 3,300 units of beginning work in process consisted of $93,945 of direct materials and $457,446 of conversion costs. It has 2,550 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month, $525,555 of direct material costs and $2,605,614 of conversion costs were charged to production.

Beginning work in process consisted of 3,300 units that were 100% complete with respect to direct materials and 40% complete with respect to conversion.

Of the 23,700 units completed, 3,300 were from beginning work in process. The remaining 20,400 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:
Cost of beginning work in process	$551,391
Costs incurred this period	3,131,169
Total costs to account for:	$3,682,560
Total costs accounted for
Difference due to rounding cost/unit	$0
Unit reconciliation:
Units to account for:
Beginning work in process inventory - units	3,300
Units started this period	22,950
Total units to account for	26,250
Total units accounted for:
Units completed and transferred out	23,700
Ending work in process - units	2,550
Total units accounted for	26,250
Equivalent units of production (EUP)- FIFO method
	Units	% Materials	EUP- Materials	% Conversion	EUP- Conversion
Beginning work in process inventory - units	3,300	0%	0	60%	1,980
Units started and completed this period	20,400	100%	20,400	100%	20,400
Ending work in process - units	2,550	100%	2,550	80%	2,040
Total units	23,700		22,950		24,420
Cost per equivalent unit of production			Materials		Conversion
Costs incurred this period			$525,555		$2,605,614
Total costs		Costs	$525,555	Costs	$2,605,614
Equivalent units of production		EUP	22,950	EUP	24,420
Cost per equivalent unit of production (rounded to 2 decimals)			$22.90		$106.70
Total costs accounted for:
Beginning Inventory Cost:				$551,391
Cost to complete beginning inventory	EUP	Cost per EUP	Total cost
Direct materials		$22.90	$0
Conversion		$106.70
Total cost to complete beginning inventory
Total cost of units in beginning inventory				551,391
Cost of units started and completed	EUP	Cost per EUP	Total cost
Direct materials		$0.00	$0
Conversion		$106.70
Total cost of units started and completed
Total cost of units transferred out				551,391
Costs of ending work in process	EUP	Cost per EUP	Total cost
Direct materials		$22.90	$0
Conversion		$106.70	0
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.