Question

tThe following informanon applies to the questions displayed below] Tamar Co. manufactures a single product in one department All direct maternals are added at the beginning of the manufacturing process. Conversion costs are added evenly throughout the process. During May, the and transferred 25,200 unts of product to finished goods Inventory. Its 3,600 unts of beginning work in process company completed of direct consisted of respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the $573.480 of direct material costs and $2.413,152 of conversion costs were charged to production. Is and $1,0 of conversion costs. It has 2700 units (100% complete with month, Beginning work in process consisted of 3,600 units that were 100% complete with respect to direct materials and 40% te with respect to conversion. Of the 25.200 units completed. 3.600 were from beginning work in process. The remaining 21,600 were unts started and completed during May . Assume that Tamar uses the FIFO method to account for its process costing system. pany's process cost summary for May using the EFO method. (Round "Cost per EUP to 2 decimal places.)

Answer 1

Answer

• All working forms part of the answer

Costs Charged to Production:
Cost of beginning WIP	$                 1,047,168.00
Costs incurred this period	$                 2,986,632.00
Total Cost to account for	$                 4,033,800.00
Total costs accounted for	$                 4,033,800.00
Difference due to rounding cost/unit	$                                      -

Units Reconciliation
Units to account for:
Beginning WIP	3,600
Units started this period	24,300
Total Units to account for	27,900
Total Units accounted for:
Completed & Transferred out	25,200
Ending WIP	2,700
Total Units accounted for	27,900

EUP - FIFO Method	Units	% Material	EUP Materials	% Conversion	EUP - Conversion
Units of beginning WIP	3,600	0%	-	60.0%	2,160
Units STARTED & COMPLETED	21,600	100%	21,600	100%	21,600
Units of ENDING WIP	2,700	100%	2,700	80%	2,160
Equivalent Units of Production			24,300		25,920
COST per EUP			Material		Conversion
Cost incurred this period			$       573,480.00		$              2,413,152.00
Total Costs		Costs	$       573,480.00	Costs	$              2,413,152.00
Equivalent units of production		EUP	24,300	EUP	25,920
Cost per EUP			$           23.60		$                     93.10

COST ASSIGNMENT & RECONCILIATION
Cost Transferred out:	EUP	Cost per EUP	Total Cost
Cost of Beginning WIP			$    1,047,168.00
Cost to complete beginning WIP-
- Direct Materials	-	$                 23.60	$                         -
- Conversion	2,160	$                 93.10	$       201,096.00
Total cost to complete beginning WIP			$    1,248,264.00
Cost of Units started & completed this period:	EUP	Cost per EUP	Total Cost
- Direct Materials	21,600	$                 23.60	$       509,760.00
- Conversion	21,600	$                 93.10	$    2,010,960.00
Total costs started & Completed this period			$    2,520,720.00
Total cost of work finished this period				$   3,768,984.00
Costs of Ending WIP:	EUP	Cost per EUP	Total Cost
- Direct Materials	2,700	$                 23.60	$          63,720.00
- Conversion	2,160	$                 93.10	$       201,096.00
Total cost of ending WIP				$      264,816.00
Total costs accounted for				$   4,033,800.00

• Journal Entry on May 31

General Journal	Debit	Credit
Finished Goods Inventory	$ 3,768,984.00
Work In Process Inventory of..[ department name]		$    3,768,984.00
(Cost of units transferred to finished goods inventory)