Required information 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 22,200 units of product to finished goods inventory. Its 3,000 units of beginning work in process consisted of $19,800 of direct materials and $221,940 of conversion costs. It has 2,400 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month, $496,800 of direct material costs and $2,165,940 of conversion costs were charged to production. Beginning work in process consisted of 3,000 units that were 100% complete with respect to direct materials and 40% complete with respect to conversion Of the 22,200 units completed, 3,000 were from beginning work 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. 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 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 EUP- % Materials Units EUP-Materials % Conversion 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 per EUP Cost to complete beginning inventory Total cost EUP Direct materials Conversion Total cost to complete beginning inventory Total cost of units in beginning inventory Cost per EUP Cost of units started and completed Total cost EUP Direct materials Conversion Total cost of units started and completed Total cost of units transferred out Cost per Costs of ending work in process EUP Total cost EUP Direct materials Conversion Total cost of ending work in process Total costs accounted for 2. Prepare the journal entry dated May 31 to transfer the cost of completed units to finished goods inventory. View transaction list Journal entry worksheet 1 Record the transfer of goods to finished goods inventory. Note: Enter debits before credits. Date General Journal Debit Credit May 31
