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Problem 20-3A (concluded)
Equivalent units of production
Direct
Materials Conversion
Units completed & transferred out..... 150,000 EUP 150,000 EUP
Units of ending work in process
Cost of beginning work in process..... $17,100 $67,200
Costs incurred this period.................. 144,400 862,400
Total costs............................................ $161,500 $929,600
÷ EUP..................................................... 170,000 EUP 166,000 EUP
Cost per EUP........................................ $0.95 per EUP $5.60 per EUP
Direct materials (20,000 EUP x $0.95 per EUP)....... 19,000
Conversion (16,000 EUP x $5.60 per EUP).............. 89,600 108,600
Total costs accounted for........................................... $1,091,100
Part 2
Transfer of goods to finished goods inventory.
Problem 20-4A (80 minutes)
Part 1
TAMAR CO.
Process Cost Summary – Weighted Average Method
For Month Ended May 31
Costs Charged to Production
Costs of beginning work in process
Direct materials.................................................................$ 19,800
Unit cost information
Units to account for Units accounted for
Equivalent units of production
Direct
Materials Conversion
Units completed & transferred out....... 22,200 EUP 22,200 EUP
Units of ending work in process.........
Equivalent units of production........... 24,600 EUP 24,120 EUP
Cost per EUP
Direct
Materials Conversion
Cost of beginning work in process..... $ 19,800 $ 221,940
[Continued on next page]Problem 20-4A (Concluded)
Cost assignment and reconciliation
Costs transferred out
Direct materials (22,200 EUP x $21.00 per EUP).................$ 466,200
Conversion (22,200 x $99.00 per EUP)................................. 2,197,800 $2,664,000
Part 2
May 31 Finished Goods Inventory.............................................2,664,000
Work in Process Inventory...................................... 2,664,000
Transfer of goods to finished inventory.
Part 3
3a. Two major estimates are the: i) overhead allocation rate, and ii)
percentage of completion for materials and conversion.
3b. Management might want an overhead allocation rate that assigns the
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
Total costs to account for................................................... $2,904,480
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
[Continued on next page]Problem 20-5A (Concluded)
Cost per EUP
Direct
Materials Conversion
Costs incurred this period.................. $ 496,800 $2,165,940
Cost per EUP........................................ $23.00 per
EUP
$94.50 per
EUP
Cost assignment and reconciliation
Costs transferred out
Cost of beginning work in process............................ $ 241,740
Cost to complete beginning work in process
Direct materials (0 EUP x $23.00 per EUP).............. $ 0
Total costs accounted for........................................... $2,904,480
Part 2
May 31 Finished Goods Inventory.............................................2,667,840
