Problem 20-4A Weighted average: Process cost summary, equivalent units, cost estimates Tamar Co. manufactures a single product in one department. All direct materials are added at the beginning of the manufacturing process. Conversion costs are added evenly throughout the process. During May, the company completed and transferred 22,200 units of product to finished goods inventory. Its 3,00o units of beginning work in process consisted of $19,800 of direct materials and $221,940 of conversion costs. It has 2,400 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month, $496,800 of direct material costs and $2,165,940 of conversion costs were charged to production. Required 1. Prepare the company's process cost summary for May using the weighted-average method. Check (1) EUP for conversion, 24,120 Prepare the journal entry dated Ma finished goods inventory (2) Cost transferred out to finished goods, $2,664,000 2. y 31 to transfer the cost of completed units to Analysis Component 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 estimat in part 3a (assume that management compensation is based on maintaining low inventory amounts)? Explain your