Problem 20-5AA FIFO: Process cost summary; equivalent units; cost estimates LO C3, C4, P4 Skip to question [The following information applies to the questions displayed below.] Tamar Co. manufactures...

Problem 20-5AA FIFO: Process cost summary; equivalent units; cost estimates LO C3, C4, P4

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[The following information applies to the questions displayed below.]


Tamar Co. manufactures a single product in two departments. All direct materials are added at the beginning of the Forming process. Conversion costs are added evenly throughout the process. During May, the Forming department started 32,400 units, and transferred 34,200 units of product to the Assembly department. Its 5,400 units of beginning work in process consisted of $92,880 of direct materials and $768,708 of conversion costs. It has 3,600 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month, $784,080 of direct materials costs and $3,495,492 of conversion costs were charged to the Forming department. The following additional information is available for the Forming department.

• Beginning work in process consisted of 5,400 units that were 100% complete with respect to direct materials and 40% complete with respect to conversion.


• Of the 34,200 units transferred out, 5,400 were from beginning work in process. The remaining 28,800 were units started and completed during May.

 Assume that Tamar uses the FIFO method to account for its process costing system.

Extracted text: Equivalent units of production (EUP)- FIF0 method Units % Materials EUP- Materials % Conversion EUP- Conversion Beginning work in process inventory - units Units started and completed this period Ending work in process - units Total units Cost per equivalent unit of production Materials Conversion Costs incurred this period Total costs Costs Costs Equivalent units of production EUP EUP Cost per equivalent unit of production (rounded to 2 decimals) Total costs accounted for: Beginning Inventory Cost: Cost per Cost to complete beginning inventory EUP Total cost EUP Direct materials 32,400 $ Conversion Total cost to complete beginning inventory Total cost of units in beginning inventory Cost per Cost of units started and completed EUP Total cost EUP Direct materials 28,800 Conversion 28,800 $ 0.00 Total cost of units started and completed


Extracted text: 1. Prepare the Forming department's process cost summary for May using the FIFO method. (Round "Cost per EUP" to 2 decimal places.) Total costs to account for: Costs incurred this period Cost of beginning work in process Total costs to account for: $ Total costs accounted for Difference due to rounding cost/unit $ Unit reconciliation: Units to account for: Beginning work in process inventory - units 5,400 Units started this period Total units to account for Total units accounted for: Units completed and transferred out Ending work in process - units Total units accounted for Equivalent units of production (EUP)- FIEO method