Required information Problem 20-6AA 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. Direct labor and overhead are added evenly throughout the process. The company uses monthly reporting periods for its weighted average process cost accounting. During May, the company completed and transferred 22,200 units of product to finished goods inventory. Its 3,000 units of beginning goods in process consisted of $19,800 of direct materials, $123,300 of direct labor, and $98,640 of factory overhead. It has 2,400 units (100% complete with respect to direct materials and 80% complete with respect to direct labor and overhead) in process at month-end. After entries to record direct materials, direct labor, and overhead for May, the company's Goods in Process Inventory account follows. Acct. No.133 Debit Credit Date May. 1 31 31 Goods in Process Inventory Explanation Balance Direct materials Direct labor Balance 241,740 738,540 496,800 1,203,300 1,941,840 2,904,480 31 Applied overhead 962,640 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. Of the 22,200 units completed, 3,000 were from beginning goods 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: Costs of beginning goods in process $ 241,740 Costs incurred this period $ 2,662,740 Total costs to account for: $ 2,904,480 $ Total costs accounted for 4,451,328,000 $ Difference due to rounding cost/unit (4,448,423,520) Unit reconciliation: Units to account for: Beginning goods in process inventory - units 3,000 Units started this period 21,600 Total units to account for 24,600 Total units accounted for: Units completed and transferred out 22,200 Ending goods in process - units 2,400 Total units accounted for 24,600 Equivalent units of production (EUP)- FIFO method Units % Materials EUP-Materials % Labor EUP-Labor % Overhead EUP- Overhead Beginning goods in process inventory - units Units started and completed this period Ending goods in process - units Total units 3,000 19,200 2,400 24,600 0% 100% 100% 19,200 2,400 21,600 Materials Labor Overhead Costs Costs Costs EUP 21,600 EUP 0 EUP 0 $ 0.00 0 0 Total cost Cost per EUP $ 80640.00 $ 0 Cost per equivalent unit of production Costs incurred this period Total costs + Equivalent units of production Cost per equivalent unit of production (rounded to 2 decimals) Total costs accounted for: Beginning Inventory Cost: Cost to complete beginning inventory EUP Direct materials 0 Direct labor Factory overhead Total cost to complete beginning inventory Total cost of units in beginning inventory Cost of units started and completed EUP Direct materials Direct labor 19,200 Factory overhead 0 Total cost of units started and completed Total cost of units transferred out Cost per Total cost EUP $ 0 $ 0.00 $ 0.00 Costs of ending goods in process Total cost Direct materials 4,451,328,000 Cost per EUP EUP 55,200 $ 80640.00 100.800 $ 0.00 80,640 $ 0.00 Direct labor 0 Factory overhead 0 $ Total cost of ending goods in process $ 4,451,328,000 $ 4,451,328,000 Total costs accounted for
