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 evenly throughout the process. During May, the company completed and transferred 27,200 units of product to finished goods inventory. Its 4,000 units of beginning work in process consisted of $149,400 of direct materials and $609,608 of conversion costs. It has 2,900 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month, $582,030 of direct material costs and $2,962,312 of conversion costs were charged to production. • Beginning work in process consisted of 4,000 units that were 100% complete with respect to direct materials and 40% complete with respect to conversion. • Of the 27,200 units completed, 4,000 were from beginning work in process. The remaining 23,200 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.)

Answer 1

Excel

Total cost Accounted for
Cost of Beginning WIP	759008
Cost incurred this Period	3544342
Total cost Accounted for	4303350
Unit Reconciliation
Units to Account for
Beginning Work in Progress -Units'	4000
Units Started this period	26100
Total units to account for	30100
Total units accounted for
Units completed and transferred out	27200
ending work in progress	2900
Total units accouted for	30100
Eqivalent units of production
	Units	% Material	EUP Material	% Conversion	EUP Converion
Beginning work in progress invntory units	4000	0	0	60%	2400
units started and complted in this period	23200	100%	23200	100%	23200
Ending WIP units	2900	100%	2900	80%	2320
Total units	30100		26100		27920
cost per eqivalent units of production			Materials		Conversion
cost incurred this period			5,82,030		29,62,312
total cost		Cost	5,82,030	Cost	29,62,312
Equivalent units of production		EUP	26100	EUP	27920
cost per eqivalent units of production			22.30		106.10
Total cost accouted for
Begiining Inventory Cost				759008
cost to Completed beginning inventory	EUP	Cost	Total Cost
Direct material	0	22.30	0
conversion	2400	106.10	254640
Total cost to complete beginning inventory				254640
Total cost of unit in beginning inventory				1013648
Cost of units started and Completed	EUP	Cost	Total Cost
Direct material	23200	22.30	517360
conversion	23200	106.10	2461520
total Cost of units started and Completed				2978880
total cost of units transferred out				3992528
Cost of ending Work in Progress	EUP	Cost	Total Cost
Direct Material	2900	22.30	64670
Conversion	2320	106.10	246152
Total cost of ending Work in Progress				310822
Total Cost accouted for				4303350