Problem 16-4A Weighted average: Process cost summary, equivalent units, cost estimates C2 C3 P41 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. IL 3.000 units of beginning work in process consisted of $19,800 of direct materials and $221.940 of conversion Custs. It has 2,400 units (100% complete with respect to direct materials and 80% complete with respect to Conversion) in process al month-end. During the month, $496.800 of direct material costs and S2.165,940 of conversion costs were charged to production Required 1. Prepare the company's process cast summary for May using the weighted average melhod. Check !) EUP for conversion, 24,120 2. Prepare the journal entry date May 31 to transfer the end of completed units to finisherlands inventory. 12 Cost transferred cut tatinished goods. 52,664,000 Analysis Component 3. The costing process depends on numerous estimates, a. Identity two major estimates that determine the cost per equivalent unit b. In what direction might you anticipate n bias from management for cach estimate in part 3a (assume that manngement compensation is based on maintaining low inventory amounts)? Explnin your answer Problem 16-5AA FIFO: Process cost summary: equivalent units; cost estimates C3 C4 P40 Reler lo the data in Problem 16-4A. Assume that Tamar uses the FIFO method to account for its process Cusling system. The following additional information is available: 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 ure from beginning work in process. The remaining 19.200 were units started and completed during May. Required 1. Prepare the company's process cast summary for May using FIFO. Check | EUP or conversion, 22,920 2. Prepare the journal entry dated May 31 to transfer the cost of completed units to finished goods inventory 2 Cast transferred cut tatinished poods, S2667,840 Problem 16-4A Weighted average: Process cost summary, equivalent units, cost estimates C2 C3 P41 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. IL 3.000 units of beginning work in process consisted of $19,800 of direct materials and $221.940 of conversion Custs. It has 2,400 units (100% complete with respect to direct materials and 80% complete with respect to Conversion) in process al month-end. During the month, $496.800 of direct material costs and S2.165,940 of conversion costs were charged to production Required 1. Prepare the company's process cast summary for May using the weighted average melhod. Check !) EUP for conversion, 24,120 2. Prepare the journal entry date May 31 to transfer the end of completed units to finisherlands inventory. 12 Cost transferred cut tatinished goods. 52,664,000 Analysis Component 3. The costing process depends on numerous estimates, a. Identity two major estimates that determine the cost per equivalent unit b. In what direction might you anticipate n bias from management for cach estimate in part 3a (assume that manngement compensation is based on maintaining low inventory amounts)? Explnin your answer Problem 16-5AA FIFO: Process cost summary: equivalent units; cost estimates C3 C4 P40 Reler lo the data in Problem 16-4A. Assume that Tamar uses the FIFO method to account for its process Cusling system. The following additional information is available: 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 ure from beginning work in process. The remaining 19.200 were units started and completed during May. Required 1. Prepare the company's process cast summary for May using FIFO. Check | EUP or conversion, 22,920 2. Prepare the journal entry dated May 31 to transfer the cost of completed units to finished goods inventory 2 Cast transferred cut tatinished poods, S2667,840
