Question
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
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 30,200 units of product to finished goods inventory. Its 4,600 units of beginning work in process consisted of $95,900 of direct materials and $861,508 of conversion costs. It has 3,200 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month, $642,240 of direct material costs and $2,971,412 of conversion costs were charged to production. |
Beginning work in process consisted of 4,600 units that were 100% complete with respect to direct materials and 40% complete with respect to conversion. | |
Of the 30,200 units completed, 4,600 were from beginning work in process. The remaining 25,600 were units started and completed during May. |
Assume that Tamar uses the FIFO method to account for its process costing system.
Prepare the companys process cost summary for May using the FIFO method. (Round "Cost per EUP" to 2 decimal places.) |
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