Problem 20-5A (80 minutes)
Part 1
TAMAR CO.
Process Cost Summary – FIFO Method
For Month Ended May 31
Costs Charged to Production
Costs of beginning work in process
Direct materials……………………………………………………….$ 19,800
Unit cost information
Units to account for Units accounted for
Beginning work in process………………………………3,000 Completed & transferred out………..22,200
Equivalent units of production
Direct
Materials Conversion
Units to complete beginning WIP
Direct materials (3,000 x 0%)………………………. 0 EUP
[Continued on next page]
Problem 20-5A (Concluded)
Cost per EUP
Direct
Materials Conversion
EUP
EUP
Cost assignment and reconciliation
Costs transferred out
Total costs accounted for…………………………………… $2,904,480
Part 2
Problem 20-6A (45 minutes)
1. Units in beginning inventory…………………………………. 37,500
2. Equivalent units of production—FIFO
Direct
Equivalent units of production—FIFO Materials Conversion
Units to complete beginning Work in Process
Direct materials (37,500 x 40%)…………………………… 15,000
Conversion (37,500 x 60%)…………………………………. 22,500
3. Cost per equivalent unit of direct materials and conversion—FIFO
Direct
Cost per equivalent unit—FIFO Materials Conversion
Costs incurred this period…………………………………… $ 505,035 $ 396,568
EUP
EUP
Problem 20-6A (Concluded)
4. Assignment of costs to output of department—FIFO
Costs of goods transferred out
Cost of beginning work in process inventory………..
Costs to complete beginning work in process
Cost of units started and completed this period
Total cost of units started and completed…………… 712,500.00
Total costs of goods transferred out…………………….. 902,593.00
Cost of ending work in process inventory
Problem 20-7A (80 minutes)
Part 1
DENGO CO.—Roasting Department
Process Cost Summary – FIFO Method
For Month Ended October 31
Costs Charged to Production
Costs of beginning work in process
Direct materials………………………………………………………. $ 9,900
Conversion…………………………………………………………….. 110,970 $ 120,870
Costs incurred this period
Unit cost information
Units to account for Units accounted for
Total units to account for…………………………………24,600 Total units accounted for……………. 24,600
Equivalent units of production
Direct
Materials Conversion
Units to complete beginning WIP
Direct materials (3,000 x 0%)………………………. 0 EUP
Conversion (3,000 x 60%)…………………………… 1,800 EUP