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 23,850 units and transferred 24,700 units of product to the Assembly department. Its 3,500 units of beginning work in process consisted of $20,300 of direct materials and $244,440 of conversion costs. It has 2,650 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month, $636,100 of direct materials costs and $2,276,640 of conversion costs were charged to the Forming department. Prepare the company’s process cost summary for May using the FIFO method. (Round "Cost per EUP" to 2 decimal places.)

Forming department

Process cost summary for May using the FIFO method

                                              units                       $

INPUTS

Beginning WIP                     3,500                 $264,740

Started                                23,850              $2,912,740

Total                                    27,350              $3,177,480

OUTPUTS

Transferred to Assembly   24,700              $1,312,805

Ending WIP                           2,650                 $126,813

Total                                    27,350             $1,439,618

Explanation:

Equivalent units of production

Materials = 3,500 x 0% + 21,200 x 100% + 2,650 x 100% = 23,850

Conversion Cost = 3,500 x 20% + 21,200 x 100% + 2,650 x 80% = 24,020

Cost per equivalent units of production

Materials = $636,100 ÷ 23,850 = $26.67

Conversion Cost = $636,100 ÷ 24,020 = $26.48

Total = $26.67 + $26.48 = $53,15

Cost allocated to units transferred and to those still in process

Transferred to Assembly =  24,700 x $53,15 = $1,312,805

Ending WIP = 2,650 x $26.67 + 2,120 x $26.48 = $126,813

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%

answer; institution based;