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 33,200 units of product to direct materials and $1,057,888 of conversion costs. It has 3,500 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month, $756,000 of direct material costs and $3,514,112 of conversion costs were charged to production.
Beginning work in process consisted of 5,200 units that were 100% complete with respect to direct materials and 40% complete with respect to conversion.
Of the 33, 200 units completed, 5,200 were from beginning work in process. The remaining 28,000 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.)
Total costs to account for: |
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Cost of beginning work in process |
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Costs incurred this period |
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Total costs to account for: |
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Total costs accounted for |
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Difference due to rounding cost/unit |
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Unit reconciliation: |
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Units to account for: |
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Beginning work in process inventory-units |
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Units started this period |
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Total units to account for |
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Total units accounted for |
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Units completed and transferred out |
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Ending work in process-units |
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Total units accounted for |
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Equivalent units of production (EUP) FIFO method
| Units | % Materials | EUP- Materials | % Conversion | EUP-Conversion |
Beginning work in process inventory-units |
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Units started and completed this period |
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Ending work in process-units |
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Total units |
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Cost per equivalent unit of production |
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| Materials |
| Conversion |
Cost incurred this period |
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Total costs |
| Costs |
| Costs |
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/ Equivalent units of production |
| EUP |
| EUP |
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Costs per equivalent unit of production(rounded 2 decimals) |
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Total costs accounted for: |
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Beginning Inventory Cost: |
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Cost to completed beginning inventory | EUP | Cost per EUP | Total Cost |
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Direct materials |
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Conversion |
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Total cost to complete beginning inventory |
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Total cost of units in beginning inventory |
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Cost of units started and completed | EUP | Cost per EUP | Total Cost |
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Direct Materials |
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Conversion |
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Total cost of units started and completed |
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Total cost of units transferred out |
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Costs of ending work in process |
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Direct Materials |
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Conversion |
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Total cost of ending work in process |
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Total costs accounted for |
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