Florida Tile produces ceramic tiles using two sequential production departments: Tile-Forming and Tile-Finishing. The following information was found for Florida Tile's first production process, the Tile-Forming Department.

Use the five steps of process costing to calculate the cost that should be assigned to (1) units completed and transferred out and(2) units still in ending work in process inventory. Then prepare the journal entry needed at month-end to transfer the costs associated with the formed tiles to the next department, Tile-Finishing.

Florida Tile
Tile-Forming Department
Month Ended May 31
Information about units:
Beginning work in process, May 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		2,000 units
Started in production during May. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		18,000 units
Completed and transferred to Finishing Department during May. . . . . . . . . . . . . . . . . . . .		16,000 units
Ending work in process, May 31 (25% complete as to direct
materials, 55% complete as to conversion cost). . . . . . . . . . . . . . . . . . . . . . . . . . .		4,000 units
Information about costs:
Beginning work in process, May 1 (consists of $800 of direct materials costs
and $4,000 of conversion costs). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		$4,800
Direct materials used in May. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		$6,000
Conversion costs incurred in May. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .		$32,400

Begin by summarizing the physical flow of units and computing total equivalent units for direct materials and for conversion costs.

Flow of	Equivalent Units
	Physical	Direct	Conversion
Flow of Production	Units	Materials	Costs
Units to account for:
Units accounted for:
Total equivalent units

Next, summarize total costs to account for.

Florida Tile: Tile-Forming Department
Costs to Account for
Month Ended May 31
		Direct	Conversion
		Materials	Costs	Total
Total costs to account for

Calculate the cost per equivalent unit. (Enter the cost per equivalent unit to the nearest cent.)

Florida Tile: Tile-Forming Department
Cost per Equivalent Unit
Month Ended May 31
	Direct	Conversion
	Materials	Costs
Cost per equivalent unit

Now we can calculate the total cost of the units completed and transferred out and the total cost of the ending work in process.(Enter quantities first, then the cost per equivalent unit amounts in the same order as calculated in the preceding step. Round the total costs to the nearest whole dollar.)

Florida Tile: Tile-Forming Department
Month Ended May 31
Assigning Costs
		Direct	Conversion	Total
		Materials	Costs
	Completed and transferred out:
	Ending work in process:
	Total costs accounted for

Finally, journalize the transfer of costs to the Finishing Department. (Record debits first, then credits. Exclude explanations from any journal entries.)

Journal Entry
Date		Accounts	Debit	Credit