related info from 3-5a
BI HII UNULUI get you anticipate a bias from management for each estimate in part 3a (as sume that management compensation is based on maintaining low inventory amounts)? Explain your answer. Refer to the data in Problem 3-SA. Assume that Tamar uses the FIFO method to account for its process costing system. The following additional information is available: 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. or the 22.200 units completed, 3,000 were from beginning goods in process. The remaining 19.200 were units started and completed during May. Problem 3-6A FIFO: Process cost summary: equivalent units; cost estimates C3 C4 P4 Required 1. Prepare the company's process cost summary for May using FIFO. 2. Prepare the journal entry dated May 31 to transfer the cost of completed units to finished goods inventory. Check (1) EUP for both labor and Overhead, 22,920 EUP (2) Cost transferred out to finished goods. $2,067,840 During May, the production department of a process manufacturing system completed a number of Problem 3-7A units of a product and transferred them to finished goods. Of these transferred units, 37.500 were in FIFO: Costs per equivalent unit: --- In the dutinn denartment at the beginning of May and 150,000 were started and completed costs assigned to products added at the begin 1. Prepare the collip 2. Prepare the journal entry dated October inventory. one department. All direct materials are added Tamar Co, manufactures a single product in one depan me manufacturine process. Direct labor and overhead are added evenly the company uses monthly reporting periods for its weighted average process cost accou company completed and transferred 22.200 units of product to finished goods inven beginning goods in process consisted of $19,800 of direct materials. $123.300 of direct of factory overhead. It has 2.400 units (100% complete with respect to direct materials with respect to direct labor and overhead) in process at month-end. After entries to record direct labor, and overhead for May, the company's Goods in Process Inventory account follow hroughout the process counting. During M inventory. Its 3.000 of direct labor, and aterials and 80% Com record direct me Acct. No. 133 Goods in Process Inventory Credit Debit Balance Date Explanation May Balance Direct materials Direct labor Applied overhead 31 31 241,740 738,540 1.941,840 2,904,480 496,800 1,203,300 962,640 Required 1. Prepare the company's process cost summary for May using the weighted average method . Prepare the journal entry dated May 31 to transfer the cost of completed units to finished goods
