Tamar Co. manufactures a single product in one department. All direct materials are added at the beginning
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Required
1. Prepare the company's process cost summary for May using the weighted-average method.
2. Prepare the journal entry dated May 31 to transfer the cost of completed units to finished goods inventory.
Analysis Components
3. The costing process depends on numerous estimates.
a. Identify two major estimates that determine the cost per equivalent unit.
b. In what direction might you anticipate a bias from management for each estimate in part 3a (assume that management compensation is based on maintaining low inventory amounts)? Explain your answer.
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