Chapter 20, Problem 5PSA

Problem 20-5A^A FIFO: Process cost summary: equivalent units; cost estimates C3 C4 P4

Refer to the data in Problem 20-4A. Assume that Tamar uses the FIFO method to account for its process costing system. The following additional information is available for the Forming department:

• 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 transferred out. 3,000 were from beginning work in process. The remaining 19,200 were units started and completed during May.

Required

1. Prepare the Forming department's process cost summary for May using FIFO.

Check (1) EUP for conversion, 22,920

2. Prepare the journal entry dated May 31 to transfer the cost of units to Assembly.

(2) Cost transferred out. $2.667.840