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 23,500 units of product to finished goods inventory. Its 5,400 units of beginning work in process consisted of $17,300 of direct materials and $329,940 of conversion costs. It has 3,600 units (100% complete with respect to direct materials and 80% complete with respect to conversion) in process at month-end. During the month, $497,600 of direct material costs and $2,519,100 of conversion costs were charged to production. Prepare the journal entry dated May 31 to transfer the cost of completed units to finished goods inventory. (Do not round intermediate calculations. Round your final answers to the nearest whole dollar.)

May 31, 202x, 23,500 units completed and transferred out

Dr Finished goods inventory 2,984,500

    Cr Work in process 2,984,500

Explanation:

beginning WIP 5,400 units

materials $17,300

conversion $329,940

ending WIP 3,600 units

materials 100% complete

conversion 80% complete (2,880 EU)

units completed and transferred out 23,500

units started and completed 18,100

costs added during the period

materials $497,600

conversion $2,519,100

total costs

materials $514,900

conversion $2,849,040

total EU

materials 18,100 + 5,400 + 3,600 = 27,100

conversion 18,100 + 5,400 + 2,880 = 26,380

cost per EU

materials $514,900 / 27,100 = $19

conversion $2,849,040 / 26,380 = $108

total = $127

costs assigned to finished units = $127 x 23,500 = $2,984,500

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.