Chap004A

Chapter 04 - Appendix A FIFO Method

Question Type

Diff

icu

lty

LO1:

Cos

t flo

ws

LO2:

WA

C e

quiv

alen

t uni

ts

LO3:

WA

C c

ost p

er E

U

LO4:

WA

C a

ssig

nmen

t of c

osts

LO5:

WA

C C

ost

rec

onc

iliat

ion

LO6:

FIF

O e

quiv

alen

t uni

ts (

Ap

p 4A

)

LO7:

FIF

O c

ost p

er E

U (

App

4A

)

LO8:

FIF

O a

ssig

nm

ent o

f cos

ts (

App

4A

)

LO9:

FIF

O C

ost r

econ

cilia

tion

(App

4A

)

Pro

fess

ion

al E

xam

Ada

pted

ID Origin CMA/CPA origin1 T/F M x x 5/e:4-10 Authors2 T/F H x x 5/e:4-9 Authors3 T/F H x 5/e:4-15 Authors4 T/F M x 6/e:4-15 Authors5 T/F M x 5/e:4-2 Authors6 T/F M x 4/e:4-170 Authors7 T/F M x 4/e:4-169 Authors8 T/F M x New, 7/11/07,C1 E.N.9 T/F M x New, 7/11/07,D2 E.N.

10Conceptual

M/C M x x 7/e:4-27 Authors

11Conceptual

M/C M x x 7/e:4-38 Authors

12Conceptual

M/C M x 7/e:4-36 Authors

13Conceptual

M/C M x 7/e:4-26 Authors14 M/C M x x New,5/27/97,E7 E.N.15 M/C M x x New,5/27/97,M7 E.N.16 M/C M x x 3/e:4-7 Authors17 M/C M x x New,5/27/97,I7 E.N.

4A-1


18 M/C M x x New,5/27/97,Q7 E.N.19 M/C H x 5/e:4-55 Authors20 M/C H x 6/e:4-33 Authors21 M/C M x New,5/25/97,C7 E.N.22 M/C M x New,5/27/97,K7 E.N.23 M/C M x 1/e:3-15 Authors24 M/C M x 2/e:3-20 Authors25 M/C M x 4/e:4-188 Authors26 M/C M x 5/e:4-47 Authors27 M/C M x New,5/27/97,G7 E.N.28 M/C M x New,5/27/97,O7 E.N.29 M/C H x 5/e:4-33 Authors30 M/C M x New,5/27/97,T7 E.N.

31 M/C E x7/12/2007 Single MC L2 E.N.

32 M/C M x7/12/2007 Sngle MC M2 E.N.

4A-133-36 Multipart M/C

M-H x x x x 7/e:4-47 to 50 Authors

4A-237-39 Multipart M/C M x x 6/e:4-41 to 43 Authors

4A-340-43 Multipart M/C M x x 5/e:4-16 to 19 Authors

4A-444-45 Multipart M/C

E-M x x 6/e:4-29 to 30 Authors

4A-546-52 Multipart M/C M x x x New 11/18/00 M5 E.N.

4A-653-55 Multipart M/C M x x x New 11/18/00 P5 E.N.

4A-756-57 Multipart M/C M x x New 11/18/00 Q5 E.N.

4A-858-59 Multipart M/C M x x New 11/18/00 N5 E.N.

4A-960-61 Multipart M/C M x x New 11/18/00 O5 E.N.

4A-10

62-63 Multipart M/C M x 5/e:4-42 to 46 Authors

4A- 64- Multipart M/C E- x 7/12/2007 Multi MC K2 E.N.

4A-2


11 65 M4A-12

66-67 Multipart M/C

E-M x 7/12/2007 Multi MC L2 E.N.

68 Problem M x x x x x x 2/e:3-P3-4 Authors69 Problem H x x x New,5/28/97,D7 E.N.70 Problem H x x x New,5/28/97,E7 E.N.71 Problem M x 8/8/2004 Problem G4 E.N.72 Problem M x 8/8/2004 Problem H4 E.N.73 Problem M x New,5/28/97,F7 E.N.74 Problem M x 8/8/2004 Problem C4 E.N.75 Problem M x 8/8/2004 Problem D4 E.N.76 Problem E x 8/8/2004 Problem K4 E.N.77 Problem E x 8/8/2004 Problem L4 E.N.78 Problem M x 8/8/2004 Problem P4 E.N.79 Problem M x 8/8/2004 Problem Q4 E.N.

4A-3


Chapter 04Appendix A FIFO Method

True / False Questions

1. The equivalent units in the ending work in process inventory will be the same under both the FIFO and the weighted-average methods of process costing. True False

2. The cost per equivalent unit for conversion costs will always be the same under both the FIFO and the weighted-average methods if there is no ending work in process inventory. True False

3. Under the FIFO method, the percentage of completion of the ending inventory must be greater than the percentage of completion of the beginning inventory. True False

4. Under the FIFO method, the equivalent units of production relate only to work done during the current period. True False

5. Under the FIFO method, costs per equivalent unit will contain only costs from the current period. True False

6. From the standpoint of cost control, the weighted-average method of process costing is superior to the FIFO method. True False

4A-4


7. The weighted-average method and the FIFO method of process costing use the same manufacturing accounts. True False

8. In the cost reconciliation report, the costs to be accounted for equals the cost of beginning work in process inventory plus the costs added during the period. True False

9. In the cost reconciliation report, the costs accounted for equals the cost of beginning work in process inventory plus the cost of ending work in process inventory. True False

Multiple Choice Questions

10. The FIFO method provides a major advantage over the weighted-average method in that: A. the calculation of equivalent units is less complex under the FIFO method.B. the FIFO method treats units in the beginning inventory as if they were started and completed during the current period.C. the FIFO method provides measurements of work done during the current period.D. the weighted-average method ignores units in the beginning and ending work in process inventories.

11. The weighted-average method of process costing differs from the FIFO method of process costing in that the weighted-average method: A. can be used under any cost flow assumption.B. does not require the use of predetermined overhead rates.C. keeps costs in the beginning inventory separate from current period costs.D. does not consider the degree of completion of units in the beginning work in process inventory when computing equivalent units of production.

4A-5


12. Equivalent units for a process costing system using the FIFO method would be equal to: A. units completed during the period plus equivalent units in the ending work in process inventory.B. units started and completed during the period plus equivalent units in the ending work in process inventory.C. units completed during the period and transferred out.D. units started and completed during the period plus equivalent units in the ending work in process inventory plus work needed to complete units in the beginning work in process inventory.

13. The computation of equivalent units under the FIFO method: A. treats units in the beginning work in process inventory as if they were started and completed during the current period.B. treats units in the beginning work in process inventory as if they represent a separate batch of goods separate and distinct from goods started and completed during the current period.C. treats units in the ending work in process inventory as if they were started and completed during the current period.D. ignores units in the beginning and ending work in process inventories.

14. Elard Company uses the FIFO method in its process costing system. The first processing department, the Welding Department, started the month with 17,000 units in its beginning work in process inventory that were 70% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $101,150. An additional 68,000 units were started into production during the month. There were 23,000 units in the ending work in process inventory of the Welding Department that were 80% complete with respect to conversion costs. A total of $565,125 in conversion costs were incurred in the department during the month.The cost per equivalent unit for conversion costs is closest to: A. $8.50B. $8.31C. $8.25D. $7.84

4A-6


15. Mannarelli Corporation uses the FIFO method in its process costing system. Operating data for the Casting Department for the month of September appear below:

According to the company's records, the conversion cost in beginning work in process inventory was $15,660 at the beginning of September. Additional conversion costs of $526,524 were incurred in the department during the month.The cost per equivalent unit for conversion costs for September is closest to: (Round off to three decimal places.) A. $5.916B. $5.340C. $5.220D. $5.213

16. Castle Company uses the FIFO method in its process costing system. In the Cutting Department in June, units were four-fifths complete with respect to conversion in the beginning work in process inventory and one-third complete with respect to conversion in the ending work in process inventory. Other data for the department for June follow:

The cost per equivalent unit for conversion cost is closest to: A. $1.40B. $1.35C. $1.21D. $1.64

4A-7


17. Imbram Corporation uses the FIFO method in its process costing system. The first processing department, the Forming Department, started the month with 23,000 units in its beginning work in process inventory that were 40% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $27,692. An additional 86,000 units were started into production during the month and 86,000 units were completed and transferred to the next processing department. There were 23,000 units in the ending work in process inventory of the Forming Department that were 10% complete with respect to conversion costs. A total of $221,480 in conversion costs were incurred in the department during the month.The cost per equivalent unit for conversion costs for the month is closest to: A. $2.80B. $2.29C. $3.01D. $2.58

18. Qik Corporation uses the FIFO method in its process costing system. Operating data for the Cutting Department for the month of March appear below:

According to the company's records, the conversion cost in beginning work in process inventory was $45,662 at the beginning of March. Additional conversion costs of $305,576 were incurred in the department during the month.The cost per equivalent unit for conversion costs for March is closest to: A. $5.77B. $5.72C. $5.91D. $6.04

4A-8


19. Herston Company uses the FIFO method in its process costing system. The beginning work in process inventory in a particular department consisted of 6,000 units, two-thirds complete with respect to conversion costs. During the month, 42,000 units were started and 40,000 units were completed and transferred out of the department. The company had 40,000 equivalent units for conversion costs. The ending work in process inventory in the department consisted of: A. 8,000 units, 25% complete with respect to conversion costsB. 0 unitsC. 8,000 units, 50% complete with respect to conversion costsD. 4,000 units, 100% complete with respect to conversion costs

20. Bennett Company uses the FIFO method in its process costing system. During April the equivalent units of production with respect to conversion costs totaled 24,600 units. Work in process inventory on April 1 consisted of 8,000 units, 40% complete with respect to conversion costs. A total of 25,000 units were started into production during the month and 20,000 units were transferred to finished goods. Based on this information, Bennett Company's work in process inventory on April 30 consisted of: A. 13,000 units, 40% complete with respect to conversion costsB. 5,000 units, 40% complete with respect to conversion costsC. 13,000 units, 60% complete with respect to conversion costsD. 4,600 units, 40% complete with respect to conversion costs

21. Cargin Company uses the FIFO method in its process costing system. The Assembly Department started the month with 15,000 units in its beginning work in process inventory that were 50% complete with respect to conversion costs. An additional 71,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 9,000 units in the ending work in process inventory of the Assembly Department that were 30% complete with respect to conversion costs.What were the equivalent units for conversion costs in the Assembly Department for the month? A. 77,000B. 79,700C. 65,000D. 72,200

4A-9


22. Kharbanda Corporation uses the FIFO method in its process costing system. Operating data for the Enameling Department for the month of May appear below:

What were the equivalent units for conversion costs in the Enameling Department for May? A. 57,960B. 55,800C. 51,000D. 55,920

23. Jolly Company uses the FIFO method in its process costing system. Beginning inventory in the mixing processing center consisted of 4,000 units, 75% complete with respect to conversion costs. Ending work in process inventory consisted of 3,000 units, 60% complete with respect to conversion costs. If 12,000 units were transferred to the next processing center during the period, the equivalent units for conversion costs would be: A. 13,200 unitsB. 10,800 unitsC. 12,000 unitsD. 13,000 units

24. Intask Company uses the FIFO method in its process costing system. Beginning inventory in the mixing department consisted of 6,000 units that were 75% complete with respect to conversion costs. Ending work in process inventory consisted of 5,000 units that were 60% complete with respect to conversion costs. If 12,000 units were transferred to the next processing department during the period, the equivalent units for conversion cost would be: A. 12,500 unitsB. 10,500 unitsC. 13,500 unitsD. 13,000 units

4A-10


25. The following data were taken from the accounting records of Abacus Company which uses the FIFO method in its process costing system:

The equivalent units are: A. Material, 90,000 units; labor and overhead, 89,000 unitsB. Material, 100,000 units; labor and overhead, 91,000 unitsC. Material, 60,000 units; labor and overhead, 53,000 unitsD. Material, 80,000 units; labor and overhead, 79,000 units

26. Branden Company uses the FIFO method in its process costing system. All materials are introduced at the beginning of the process in Department One. The following data relate to the month of May for Department One:

What are the equivalent units for the month of May?

A. Option AB. Option BC. Option CD. Option D

4A-11


27. Galos Corporation uses the FIFO method in its process costing system. The Grinding Department started the month with 3,000 units in its beginning work in process inventory that were 70% complete with respect to conversion costs. An additional 82,000 units were transferred in from the prior department during the month to begin processing in the Grinding Department. During the month 74,000 units were completed in the Grinding Department and transferred to the next processing department. There were 11,000 units in the ending work in process inventory of the Grinding Department that were 10% complete with respect to conversion costs.What were the equivalent units for conversion costs in the Grinding Department for the month? A. 74,000B. 75,100C. 90,000D. 73,000

28. Ozogus Company uses the FIFO method in its process costing system. Operating data for the Brazing Department for the month of November appear below:

What were the equivalent units for conversion costs in the Brazing Department for November? A. 36,600B. 35,800C. 39,300D. 34,800

4A-12


29. Severn Company uses the FIFO method in its process costing system. The following data were taken from the accounting records of the company for last month:

The cost of the units in the ending Work in Process inventory is: A. $17,000B. $20,000C. $10,000D. $22,500

4A-13


30. Tepla Corporation uses the FIFO method in its process costing system. Operating data for the Curing Department for the month of March appear below:

According to the company's records, the conversion cost in beginning work in process inventory was $40,608 at the beginning of March. The cost per equivalent unit for conversion costs for March was $9.30.How much conversion cost would be assigned to the units completed and transferred out of the department during March? A. $562,152B. $561,720C. $520,800D. $521,544

31. In October, one of the processing departments at Schones Corporation had beginning work in process inventory of $26,000 and ending work in process inventory of $17,000. During the month, $279,000 of costs were added to production and the cost of units transferred out from the department was $288,000. The company uses the FIFO method in its process costing system. In the department's cost reconciliation report for October, the total cost to be accounted for would be: A. $584,000B. $43,000C. $610,000D. $305,000

4A-14


32. In November, one of the processing departments at Ijames Corporation had ending work in process inventory of $26,000. During the month, $426,000 of costs were added to production and the cost of units transferred out from the department was $436,000. The company uses the FIFO method in its process costing system. In the department's cost reconciliation report for November, the total cost to be accounted for would be: A. $924,000B. $888,000C. $62,000D. $462,000

Zippy Company has a process costing system. Information about units processed and processing costs incurred during a recent month in the Refining Department follow:

The beginning work in process inventory had $10,946 of processing cost attached to it at the beginning of the month. During the month, the Department incurred an additional $289,954 in processing cost.

33. Assuming that the company uses the weighted-average method, what are the equivalent units for processing costs for the Department for the month? A. 94,000B. 100,300C. 100,000D. 112,000

4A-15


34. Assuming that the company uses the weighted-average method, what is the cost per equivalent unit for processing for the month? A. $2.89B. $2.98C. $3.00D. $3.08

35. Assuming that the company uses the FIFO method, what are the equivalent units for processing costs for the Department for the month? A. 97,300B. 91,300C. 94,000D. 100,300

36. Assuming that the company uses the FIFO method, what is the cost per equivalent unit of production for processing for the month? A. $2.89B. $2.98C. $3.00D. $3.09

Nyman Company successfully switched to a lean production system at the beginning of March. Therefore, as shown by the summary below, there were no work in process inventories on hand at the end of the month.

4A-16


37. If Nyman Company uses the FIFO cost method, the March equivalent units for conversion would be: A. 150,000 unitsB. 190,000 unitsC. 172,000 unitsD. 168,000 units

38. If Nyman Company uses the weighted-average cost method, the March equivalent units for materials would be: A. 190,000 unitsB. 174,000 unitsC. 150,000 unitsD. 166,000 units

39. If Nyman continues to successfully employ lean production and starts 140,000 units into production during April (the next month), the April equivalent units for conversion costs using the weighted-average method would be: A. 150,000 unitsB. 140,000 unitsC. 190,000 unitsD. 160,000 units

The activity in Nolan Company's Blending Department for the month of April is given below:

All materials are added at the beginning of processing in the Blending Department.

4A-17


40. The equivalent units for material for the month, using the FIFO method, are: A. 50,000 unitsB. 58,000 unitsC. 54,000 unitsD. 60,000 units

41. The equivalent units for labor and overhead for the month, using the FIFO method, are: A. 47,000 unitsB. 51,000 unitsC. 5,000 unitsD. 54,000 units

42. The equivalent units for material for the month, using the weighted-average method, are: A. 48,000 unitsB. 50,000 unitsC. 58,000 unitsD. 52,000 units

43. The equivalent units for labor and overhead for the month, using the weighted-average method, are: A. 50,000 unitsB. 51,000 unitsC. 47,000 unitsD. 55,000 units

Wilson Company has a process costing system. The Assembly Department had the following costs for May:

4A-18


44. Assume that Wilson uses the FIFO method, and that for May the company computed 16,000 equivalent units for materials. The cost per equivalent unit for materials for the month would have been: A. $12.50B. $3.00C. $5.00D. $9.50

45. Assume that Wilson uses the weighted-average method and that for May the company computed 20,000 equivalent units for labor and overhead. The cost per equivalent unit for labor and overhead for the month would have been: A. $1.60B. $10.00C. $8.40D. $16.00

Morvan Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below:

Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed.

4A-19


46. What are the equivalent units for materials for the month in the first processing department? A. 9,000B. 375C. 8,300D. 8,715

47. What are the equivalent units for conversion costs for the month in the first processing department? A. 9,000B. 8,500C. 8,300D. 150

48. The cost per equivalent unit for materials for the month in the first processing department is closest to: A. $27.70B. $26.82C. $28.13D. $28.40

49. The cost per equivalent unit for conversion costs for the first department for the month is closest to: A. $48.50B. $44.72C. $42.59D. $43.33

50. The cost of a completed unit transferred out of the department is closest to: A. $74.51B. $68.27C. $74.02D. $70.29

4A-20


51. The total cost transferred from the first processing department to the next processing department during the month is closest to: A. $603,400B. $597,619C. $632,583D. $614,400

52. The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: A. $35,144B. $16,775C. $10,543D. $26,358

Prasad Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below:

Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places.

4A-21





4A-22


Qdynamic Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below:


56. How many units were started AND completed during the month in the first processing department? A. 6,100B. 5,500C. 7,600D. 7,000


4A-23


Nilgiri Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below:


58. What are the equivalent units for materials for the month in the first processing department? A. 1,680B. 7,150C. 8,200D. 5,200


4A-24


Osborne Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below:


60. What are the equivalent units for conversion costs for the month in the first processing department? A. 6,600B. 440C. 7,150D. 7,600


4A-25


The information below was obtained from the records of one of the departments of Cushing Company for the month of August. The company uses the FIFO method in its process costing system.

All materials are added at the beginning of the process.

62. The equivalent units for materials for the month of August are: A. 75,000 unitsB. 85,000 unitsC. 87,500 unitsD. 95,000 units

63. The equivalent units for labor and overhead for the month of August are: A. 85,000 unitsB. 95,000 unitsC. 87,500 unitsD. 82,500 units

In February, one of the processing departments at Grosz Corporation had beginning work in process inventory of $18,000 and ending work in process inventory of $11,000. During the month, the cost of units transferred out from the department was $204,000. The company uses the FIFO method in its process costing system.

4A-26


64. In the department's cost reconciliation report for February, the costs added to production in the department would be: A. $211,000B. $197,000C. $186,000D. $193,000

65. In the department's cost reconciliation report for February, the total cost accounted for would be: A. $29,000B. $412,000C. $215,000D. $430,000

In May, one of the processing departments at Lukman Corporation had beginning work in process inventory of $11,000. During the month, $120,000 of costs were added to production and the cost of units transferred out from the department was $94,000. The company uses the FIFO method in its process costing system.

66. In the department's cost reconciliation report for May, the cost of ending work in process inventory would be: A. $15,000B. $63,000C. $37,000D. $26,000

67. In the department's cost reconciliation report for May, the total cost to be accounted for would be: A. $48,000B. $251,000C. $262,000D. $131,000

Essay Questions

4A-27


68. Dita Company uses a process costing system. The following information relates to one month's activity in the company's Curing Department.

The conversion cost of the beginning inventory was $6,500. During the month, $112,000 in additional conversion cost was incurred.

Required:

a. Assume that the company uses the FIFO method. Compute:1. The equivalent units of production for conversion for the month.2. The cost per equivalent unit for conversion for the month.3. The total cost transferred out during the month.4. The cost assigned to the ending work in process inventory.

b. Assume that the company uses the weighted-average cost method. Compute:1. The equivalent units of production for conversion for the month.2. The cost per equivalent unit for conversion for the month.3. The total cost transferred out during the month.4. The cost assigned to the ending work in process inventory.

4A-28


69. Dana Inc. uses the FIFO method in its process costing system. The following data concern the operations of the company's first processing department for a recent month.

Required:

Using the FIFO method:

a. Determine the equivalent units of production for materials and conversion costs.b. Determine the cost per equivalent unit for materials and conversion costs.c. Determine the cost of ending work in process inventory.d. Determine the cost of units transferred out of the department during the month.

4A-29


70. Ermoin Inc. uses the FIFO method in its process costing system. The following data concern the operations of the company's first processing department for a recent month.

Required:



4A-30


71. Deluz Corporation uses the FIFO method in its process costing. The following data pertain to its Assembly Department for August.

Required:

Compute the equivalent units of production for both materials and conversion costs for the Assembly Department for August using the FIFO method.

4A-31


72. The following data pertain to the Milling Department of Gehle Corporation for July. The company uses the FIFO method in its process costing.

Required:

Compute the equivalent units of production for both materials and conversion costs for the Milling Department for July using the FIFO method.

4A-32


73. Froment Inc. uses the FIFO method in its process costing system. The following data concern the operations of the company's first processing department for a recent month.

Required:

Using the FIFO method, determine the equivalent units of production for materials and conversion costs.

4A-33


74. Glazener Corporation uses the FIFO method in its process costing. The following data pertain to its Assembly Department for June.

Required:

Determine the equivalent units of production for the Assembly Department for June using the FIFO method.

4A-34


75. The following data have been provided by Bicknese Corporation for the Circuit Prep Department. The company uses the FIFO method in its process costing.

Required:

Determine the equivalent units of production for the Circuit Prep Department for August using the FIFO method.

76. Clasby Corporation uses the FIFO method in its process costing. The following data concern the company's Assembly Department for the month of January.

Required:

Compute the costs per equivalent unit for the Assembly Department for January using the FIFO method.

4A-35


77. Kortge Corporation uses the FIFO method in its process costing. The following data concern the company's Mixing Department for the month of August.

Required:

Compute the cost per equivalent unit for materials and conversion for the Mixing Department for August using the FIFO method.

4A-36


78. Dung Corporation uses the FIFO method in its process costing system. The following data concern the company's Assembly Department for the month of August.

Required:

Determine the cost of ending work in process inventory and the cost of units transferred out of the department during August using the FIFO method.

4A-37


79. The following data has been provided by Palafox Inc., a company that uses the FIFO method in its process costing system. The data concern the company's Shaping Department for the month of March.

Required:

Determine the cost of ending work in process inventory and the cost of the units transferred out of the department during March using the FIFO method.

4A-38


Chapter 04 Appendix A FIFO Method Answer Key

True / False Questions

1. The equivalent units in the ending work in process inventory will be the same under both the FIFO and the weighted-average methods of process costing. TRUE

AACSB: Reflective ThinkingAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: ComprehensionLearning Objective: 04A-02 Compute the equivalent units of production using the weighted-average methodLearning Objective: 04A-06 Compute the equivalent units of production using the FIFO methodLevel: Medium

2. The cost per equivalent unit for conversion costs will always be the same under both the FIFO and the weighted-average methods if there is no ending work in process inventory. FALSE

AACSB: Reflective ThinkingAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: ComprehensionLearning Objective: 04A-03 Compute the cost per equivalent unit using the weighted-average methodLearning Objective: 04A-07 Compute the cost per equivalent unit using the FIFO methodLevel: Hard

3. Under the FIFO method, the percentage of completion of the ending inventory must be greater than the percentage of completion of the beginning inventory. FALSE

AACSB: Reflective ThinkingAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: ComprehensionLearning Objective: 04A-06 Compute the equivalent units of production using the FIFO methodLevel: Hard

4A-39


4. Under the FIFO method, the equivalent units of production relate only to work done during the current period. TRUE

AACSB: Reflective ThinkingAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: ComprehensionLearning Objective: 04A-06 Compute the equivalent units of production using the FIFO methodLevel: Medium

5. Under the FIFO method, costs per equivalent unit will contain only costs from the current period. TRUE

AACSB: Reflective ThinkingAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: ComprehensionLearning Objective: 04A-07 Compute the cost per equivalent unit using the FIFO methodLevel: Medium

6. From the standpoint of cost control, the weighted-average method of process costing is superior to the FIFO method. FALSE

AACSB: Reflective ThinkingAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: ComprehensionLearning Objective: 04A-08 Assign costs to units using the FIFO methodLevel: Medium

7. The weighted-average method and the FIFO method of process costing use the same manufacturing accounts. TRUE

AACSB: Reflective ThinkingAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: ComprehensionLearning Objective: 04A-08 Assign costs to units using the FIFO methodLevel: Medium

4A-40


8. In the cost reconciliation report, the costs to be accounted for equals the cost of beginning work in process inventory plus the costs added during the period. TRUE

AACSB: Reflective ThinkingAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: ComprehensionLearning Objective: 04A-09 Prepare a cost reconciliation report using the FIFO methodLevel: Medium

9. In the cost reconciliation report, the costs accounted for equals the cost of beginning work in process inventory plus the cost of ending work in process inventory. FALSE

AACSB: Reflective ThinkingAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: ComprehensionLearning Objective: 04A-09 Prepare a cost reconciliation report using the FIFO methodLevel: Medium

Multiple Choice Questions

10. The FIFO method provides a major advantage over the weighted-average method in that: A. the calculation of equivalent units is less complex under the FIFO method.B. the FIFO method treats units in the beginning inventory as if they were started and completed during the current period.C. the FIFO method provides measurements of work done during the current period.D. the weighted-average method ignores units in the beginning and ending work in process inventories.


4A-41


11. The weighted-average method of process costing differs from the FIFO method of process costing in that the weighted-average method: A. can be used under any cost flow assumption.B. does not require the use of predetermined overhead rates.C. keeps costs in the beginning inventory separate from current period costs.D. does not consider the degree of completion of units in the beginning work in process inventory when computing equivalent units of production.


12. Equivalent units for a process costing system using the FIFO method would be equal to: A. units completed during the period plus equivalent units in the ending work in process inventory.B. units started and completed during the period plus equivalent units in the ending work in process inventory.C. units completed during the period and transferred out.D. units started and completed during the period plus equivalent units in the ending work in process inventory plus work needed to complete units in the beginning work in process inventory.


4A-42


13. The computation of equivalent units under the FIFO method: A. treats units in the beginning work in process inventory as if they were started and completed during the current period.B. treats units in the beginning work in process inventory as if they represent a separate batch of goods separate and distinct from goods started and completed during the current period.C. treats units in the ending work in process inventory as if they were started and completed during the current period.D. ignores units in the beginning and ending work in process inventories.


4A-43


14. Elard Company uses the FIFO method in its process costing system. The first processing department, the Welding Department, started the month with 17,000 units in its beginning work in process inventory that were 70% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $101,150. An additional 68,000 units were started into production during the month. There were 23,000 units in the ending work in process inventory of the Welding Department that were 80% complete with respect to conversion costs. A total of $565,125 in conversion costs were incurred in the department during the month.The cost per equivalent unit for conversion costs is closest to: A. $8.50B. $8.31C. $8.25D. $7.84

FIFO methodUnits started and completed during the period = Units started into production during the period - Units in ending work in process inventory = 68,000 - 23,000 = 45,000

AACSB: AnalyticAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: ApplicationLearning Objective: 04A-06 Compute the equivalent units of production using the FIFO methodLearning Objective: 04A-07 Compute the cost per equivalent unit using the FIFO methodLevel: Medium

4A-44


15. Mannarelli Corporation uses the FIFO method in its process costing system. Operating data for the Casting Department for the month of September appear below:

According to the company's records, the conversion cost in beginning work in process inventory was $15,660 at the beginning of September. Additional conversion costs of $526,524 were incurred in the department during the month.The cost per equivalent unit for conversion costs for September is closest to: (Round off to three decimal places.) A. $5.916B. $5.340C. $5.220D. $5.213


4A-45



16. Castle Company uses the FIFO method in its process costing system. In the Cutting Department in June, units were four-fifths complete with respect to conversion in the beginning work in process inventory and one-third complete with respect to conversion in the ending work in process inventory. Other data for the department for June follow:

The cost per equivalent unit for conversion cost is closest to: A. $1.40B. $1.35C. $1.21D. $1.64

FIFO methodUnits started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 135,000 - 25,000 = 110,000

4A-46


Units in beginning work in process inventory + Units started into production during the period = Units in ending work in process inventory + Units completed during the period25,000 + 140,000 = X + 135,000X = 25,000 + 140,000 - 135,000 = 30,000Y = X 1/3 = 30,000 1/3 = 10,000Z = 5,000 + 110,000 + Y = 5,000 + 110,000 + 10,000 = 125,000


4A-47


17. Imbram Corporation uses the FIFO method in its process costing system. The first processing department, the Forming Department, started the month with 23,000 units in its beginning work in process inventory that were 40% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $27,692. An additional 86,000 units were started into production during the month and 86,000 units were completed and transferred to the next processing department. There were 23,000 units in the ending work in process inventory of the Forming Department that were 10% complete with respect to conversion costs. A total of $221,480 in conversion costs were incurred in the department during the month.The cost per equivalent unit for conversion costs for the month is closest to: A. $2.80B. $2.29C. $3.01D. $2.58



4A-48


18. Qik Corporation uses the FIFO method in its process costing system. Operating data for the Cutting Department for the month of March appear below:

According to the company's records, the conversion cost in beginning work in process inventory was $45,662 at the beginning of March. Additional conversion costs of $305,576 were incurred in the department during the month.The cost per equivalent unit for conversion costs for March is closest to: A. $5.77B. $5.72C. $5.91D. $6.04


4A-49



19. Herston Company uses the FIFO method in its process costing system. The beginning work in process inventory in a particular department consisted of 6,000 units, two-thirds complete with respect to conversion costs. During the month, 42,000 units were started and 40,000 units were completed and transferred out of the department. The company had 40,000 equivalent units for conversion costs. The ending work in process inventory in the department consisted of: A. 8,000 units, 25% complete with respect to conversion costsB. 0 unitsC. 8,000 units, 50% complete with respect to conversion costsD. 4,000 units, 100% complete with respect to conversion costs


2,000 + 34,000 + X = 40,000X = 40,000 - 2,000 - 34,000 = 4,000

Units in beginning work in process inventory + Units started into production during the period = Units in ending work in process inventory + Units completed during the period6,000 + 42,000 = Y + 40,000Y = 6,000 + 42,000 - 40,000 = 8,000

Y Z = X8,000 Z = 4,000Z = 4,000 8,000 = 0.50

4A-50


AACSB: AnalyticAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: ApplicationLearning Objective: 04A-06 Compute the equivalent units of production using the FIFO methodLevel: Hard

20. Bennett Company uses the FIFO method in its process costing system. During April the equivalent units of production with respect to conversion costs totaled 24,600 units. Work in process inventory on April 1 consisted of 8,000 units, 40% complete with respect to conversion costs. A total of 25,000 units were started into production during the month and 20,000 units were transferred to finished goods. Based on this information, Bennett Company's work in process inventory on April 30 consisted of: A. 13,000 units, 40% complete with respect to conversion costsB. 5,000 units, 40% complete with respect to conversion costsC. 13,000 units, 60% complete with respect to conversion costsD. 4,600 units, 40% complete with respect to conversion costs


4,800 + 12,000 + X = 24,600X = 24,600 - 4,800 - 12,000 = 7,800

Units in beginning work in process inventory + Units started into production during the period = Units in ending work in process inventory + Units completed during the period8,000 + 25,000 = Y + 20,000Y = 8,000 + 25,000 - 20,000 = 13,000

Y Z = X13,000 Z = 7,800Z = 7,800 13,000 = 0.60

4A-51


AACSB: AnalyticAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: ApplicationLearning Objective: 04A-06 Compute the equivalent units of production using the FIFO methodLevel: Hard

21. Cargin Company uses the FIFO method in its process costing system. The Assembly Department started the month with 15,000 units in its beginning work in process inventory that were 50% complete with respect to conversion costs. An additional 71,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 9,000 units in the ending work in process inventory of the Assembly Department that were 30% complete with respect to conversion costs.What were the equivalent units for conversion costs in the Assembly Department for the month? A. 77,000B. 79,700C. 65,000D. 72,200


AACSB: AnalyticAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: ApplicationLearning Objective: 04A-06 Compute the equivalent units of production using the FIFO methodLevel: Medium

4A-52


22. Kharbanda Corporation uses the FIFO method in its process costing system. Operating data for the Enameling Department for the month of May appear below:

What were the equivalent units for conversion costs in the Enameling Department for May? A. 57,960B. 55,800C. 51,000D. 55,920



4A-53


23. Jolly Company uses the FIFO method in its process costing system. Beginning inventory in the mixing processing center consisted of 4,000 units, 75% complete with respect to conversion costs. Ending work in process inventory consisted of 3,000 units, 60% complete with respect to conversion costs. If 12,000 units were transferred to the next processing center during the period, the equivalent units for conversion costs would be: A. 13,200 unitsB. 10,800 unitsC. 12,000 unitsD. 13,000 units



4A-54


24. Intask Company uses the FIFO method in its process costing system. Beginning inventory in the mixing department consisted of 6,000 units that were 75% complete with respect to conversion costs. Ending work in process inventory consisted of 5,000 units that were 60% complete with respect to conversion costs. If 12,000 units were transferred to the next processing department during the period, the equivalent units for conversion cost would be: A. 12,500 unitsB. 10,500 unitsC. 13,500 unitsD. 13,000 units



4A-55


25. The following data were taken from the accounting records of Abacus Company which uses the FIFO method in its process costing system:

The equivalent units are: A. Material, 90,000 units; labor and overhead, 89,000 unitsB. Material, 100,000 units; labor and overhead, 91,000 unitsC. Material, 60,000 units; labor and overhead, 53,000 unitsD. Material, 80,000 units; labor and overhead, 79,000 units



4A-56


26. Branden Company uses the FIFO method in its process costing system. All materials are introduced at the beginning of the process in Department One. The following data relate to the month of May for Department One:

What are the equivalent units for the month of May?

A. Option AB. Option BC. Option CD. Option D



4A-57


27. Galos Corporation uses the FIFO method in its process costing system. The Grinding Department started the month with 3,000 units in its beginning work in process inventory that were 70% complete with respect to conversion costs. An additional 82,000 units were transferred in from the prior department during the month to begin processing in the Grinding Department. During the month 74,000 units were completed in the Grinding Department and transferred to the next processing department. There were 11,000 units in the ending work in process inventory of the Grinding Department that were 10% complete with respect to conversion costs.What were the equivalent units for conversion costs in the Grinding Department for the month? A. 74,000B. 75,100C. 90,000D. 73,000

FIFO methodUnits started and completed during the period = Units started into production during the period -Units in ending work in process inventory = 82,000 - 11,000 = 71,000


4A-58


28. Ozogus Company uses the FIFO method in its process costing system. Operating data for the Brazing Department for the month of November appear below:

What were the equivalent units for conversion costs in the Brazing Department for November? A. 36,600B. 35,800C. 39,300D. 34,800

FIFO methodUnits started and completed during the period = Units started into production during the period -Units in ending work in process inventory = 35,300 - 5,000 = 30,300


4A-59


29. Severn Company uses the FIFO method in its process costing system. The following data were taken from the accounting records of the company for last month:

The cost of the units in the ending Work in Process inventory is: A. $17,000B. $20,000C. $10,000D. $22,500

FIFO methodUnits started and completed during the period = Units completed during the period - Units inbeginning work in process inventory = 80,000 - 15,000 = 65,000

4A-60


AACSB: AnalyticAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: ApplicationLearning Objective: 04A-08 Assign costs to units using the FIFO methodLevel: Hard

30. Tepla Corporation uses the FIFO method in its process costing system. Operating data for the Curing Department for the month of March appear below:

According to the company's records, the conversion cost in beginning work in process inventory was $40,608 at the beginning of March. The cost per equivalent unit for conversion costs for March was $9.30.How much conversion cost would be assigned to the units completed and transferred out of the department during March? A. $562,152B. $561,720C. $520,800D. $521,544

4A-61



AACSB: AnalyticAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: ApplicationLearning Objective: 04A-08 Assign costs to units using the FIFO methodLevel: Medium

4A-62


31. In October, one of the processing departments at Schones Corporation had beginning work in process inventory of $26,000 and ending work in process inventory of $17,000. During the month, $279,000 of costs were added to production and the cost of units transferred out from the department was $288,000. The company uses the FIFO method in its process costing system. In the department's cost reconciliation report for October, the total cost to be accounted for would be: A. $584,000B. $43,000C. $610,000D. $305,000

FIFO method

AACSB: AnalyticAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: ApplicationLearning Objective: 04A-09 Prepare a cost reconciliation report using the FIFO methodLevel: Easy

4A-63


32. In November, one of the processing departments at Ijames Corporation had ending work in process inventory of $26,000. During the month, $426,000 of costs were added to production and the cost of units transferred out from the department was $436,000. The company uses the FIFO method in its process costing system. In the department's cost reconciliation report for November, the total cost to be accounted for would be: A. $924,000B. $888,000C. $62,000D. $462,000

FIFO method

AACSB: AnalyticAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: ApplicationLearning Objective: 04A-09 Prepare a cost reconciliation report using the FIFO methodLevel: Medium

Zippy Company has a process costing system. Information about units processed and processing costs incurred during a recent month in the Refining Department follow:

The beginning work in process inventory had $10,946 of processing cost attached to it at the beginning of the month. During the month, the Department incurred an additional $289,954 in processing cost.

4A-64


33. Assuming that the company uses the weighted-average method, what are the equivalent units for processing costs for the Department for the month? A. 94,000B. 100,300C. 100,000D. 112,000

Weighted-average method

AACSB: AnalyticAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: ApplicationLearning Objective: 04A-02 Compute the equivalent units of production using the weighted-average methodLevel: Medium

4A-65


34. Assuming that the company uses the weighted-average method, what is the cost per equivalent unit for processing for the month? A. $2.89B. $2.98C. $3.00D. $3.08


AACSB: AnalyticAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: ApplicationLearning Objective: 04A-03 Compute the cost per equivalent unit using the weighted-average methodLevel: Hard

4A-66


35. Assuming that the company uses the FIFO method, what are the equivalent units for processing costs for the Department for the month? A. 97,300B. 91,300C. 94,000D. 100,300



4A-67


36. Assuming that the company uses the FIFO method, what is the cost per equivalent unit of production for processing for the month? A. $2.89B. $2.98C. $3.00D. $3.09


AACSB: AnalyticAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: ApplicationLearning Objective: 04A-07 Compute the cost per equivalent unit using the FIFO methodLevel: Medium

Nyman Company successfully switched to a lean production system at the beginning of March. Therefore, as shown by the summary below, there were no work in process inventories on hand at the end of the month.

4A-68


37. If Nyman Company uses the FIFO cost method, the March equivalent units for conversion would be: A. 150,000 unitsB. 190,000 unitsC. 172,000 unitsD. 168,000 units



4A-69


38. If Nyman Company uses the weighted-average cost method, the March equivalent units for materials would be: A. 190,000 unitsB. 174,000 unitsC. 150,000 unitsD. 166,000 units



4A-70


39. If Nyman continues to successfully employ lean production and starts 140,000 units into production during April (the next month), the April equivalent units for conversion costs using the weighted-average method would be: A. 150,000 unitsB. 140,000 unitsC. 190,000 unitsD. 160,000 units

Weighted-average methodWith lean production there should be no beginning or ending inventories.


The activity in Nolan Company's Blending Department for the month of April is given below:

All materials are added at the beginning of processing in the Blending Department.

4A-71


40. The equivalent units for material for the month, using the FIFO method, are: A. 50,000 unitsB. 58,000 unitsC. 54,000 unitsD. 60,000 units



4A-72


41. The equivalent units for labor and overhead for the month, using the FIFO method, are: A. 47,000 unitsB. 51,000 unitsC. 5,000 unitsD. 54,000 units



4A-73


42. The equivalent units for material for the month, using the weighted-average method, are: A. 48,000 unitsB. 50,000 unitsC. 58,000 unitsD. 52,000 units

Weighted-average methodUnits in beginning work in process inventory + Units started into production = Units in ending work in process inventory + Units transferred to the next departmentUnits transferred to the next department = Units in beginning work in process inventory + Units started into production - Units in ending work in process inventory = 8,000 + 50,000 - 10,000 = 48,000


4A-74


43. The equivalent units for labor and overhead for the month, using the weighted-average method, are: A. 50,000 unitsB. 51,000 unitsC. 47,000 unitsD. 55,000 units

Weighted-average methodUnits in beginning work in process inventory + Units started into production = Units in ending work in process inventory + Units transferred to the next departmentUnits transferred to the next department = Units in beginning work in process inventory + Units started into production - Units in ending work in process inventory = 8,000 + 50,000 - 10,000 = 48,000


Wilson Company has a process costing system. The Assembly Department had the following costs for May:

4A-75


44. Assume that Wilson uses the FIFO method, and that for May the company computed 16,000 equivalent units for materials. The cost per equivalent unit for materials for the month would have been: A. $12.50B. $3.00C. $5.00D. $9.50

FIFO method


4A-76


45. Assume that Wilson uses the weighted-average method and that for May the company computed 20,000 equivalent units for labor and overhead. The cost per equivalent unit for labor and overhead for the month would have been: A. $1.60B. $10.00C. $8.40D. $16.00


AACSB: AnalyticAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: ApplicationLearning Objective: 04A-03 Compute the cost per equivalent unit using the weighted-average methodLevel: Easy

4A-77


Morvan Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below:

Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed.

4A-78



FIFO methodUnits started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 8,500 - 200 = 8,300


4A-79


47. What are the equivalent units for conversion costs for the month in the first processing department? A. 9,000B. 8,500C. 8,300D. 150



4A-80





4A-81





4A-82


50. The cost of a completed unit transferred out of the department is closest to: A. $74.51B. $68.27C. $74.02D. $70.29




4A-83



Note: The answer without any rounding error is $597,619.


4A-84


52. The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: A. $35,144B. $16,775C. $10,543D. $26,358

FIFO methodUnits started and completed during the period = Units completed during the period - Units inbeginning work in process inventory = 8,500 - 200 = 8,300

Note: The answer without any rounding error is $16,775.


4A-85


Prasad Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below:


4A-86





4A-87






4A-88



Note: With no rounding, the answer is $449,250.


4A-89


Qdynamic Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below:


56. How many units were started AND completed during the month in the first processing department? A. 6,100B. 5,500C. 7,600D. 7,000



4A-90





4A-91


Nilgiri Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below:


4A-92


58. What are the equivalent units for materials for the month in the first processing department? A. 1,680B. 7,150C. 8,200D. 5,200



4A-93





4A-94


Osborne Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below:


4A-95


60. What are the equivalent units for conversion costs for the month in the first processing department? A. 6,600B. 440C. 7,150D. 7,600



4A-96





4A-97


The information below was obtained from the records of one of the departments of Cushing Company for the month of August. The company uses the FIFO method in its process costing system.

All materials are added at the beginning of the process.

62. The equivalent units for materials for the month of August are: A. 75,000 unitsB. 85,000 unitsC. 87,500 unitsD. 95,000 units



4A-98


63. The equivalent units for labor and overhead for the month of August are: A. 85,000 unitsB. 95,000 unitsC. 87,500 unitsD. 82,500 units



In February, one of the processing departments at Grosz Corporation had beginning work in process inventory of $18,000 and ending work in process inventory of $11,000. During the month, the cost of units transferred out from the department was $204,000. The company uses the FIFO method in its process costing system.

4A-99


64. In the department's cost reconciliation report for February, the costs added to production in the department would be: A. $211,000B. $197,000C. $186,000D. $193,000

FIFO method


4A-100


65. In the department's cost reconciliation report for February, the total cost accounted for would be: A. $29,000B. $412,000C. $215,000D. $430,000

FIFO method


In May, one of the processing departments at Lukman Corporation had beginning work in process inventory of $11,000. During the month, $120,000 of costs were added to production and the cost of units transferred out from the department was $94,000. The company uses the FIFO method in its process costing system.

4A-101


66. In the department's cost reconciliation report for May, the cost of ending work in process inventory would be: A. $15,000B. $63,000C. $37,000D. $26,000

FIFO method


4A-102


67. In the department's cost reconciliation report for May, the total cost to be accounted for would be: A. $48,000B. $251,000C. $262,000D. $131,000

FIFO method


Essay Questions

4A-103


68. Dita Company uses a process costing system. The following information relates to one month's activity in the company's Curing Department.

The conversion cost of the beginning inventory was $6,500. During the month, $112,000 in additional conversion cost was incurred.

Required:

a. Assume that the company uses the FIFO method. Compute:1. The equivalent units of production for conversion for the month.2. The cost per equivalent unit for conversion for the month.3. The total cost transferred out during the month.4. The cost assigned to the ending work in process inventory.

b. Assume that the company uses the weighted-average cost method. Compute:1. The equivalent units of production for conversion for the month.2. The cost per equivalent unit for conversion for the month.3. The total cost transferred out during the month.4. The cost assigned to the ending work in process inventory.

4A-104


a. FIFO method1. Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 26,000 - 10,000 = 16,000

2. $112,000 28,000 EUs = $4 per EU.

4. 5,000 80% $4 per EU = $16,000b. Weighted-average method

$118,500 30,000 EUs = $3.95 per EU

3. 26,000 $3.95 per EU = $102,700

4. 5,000 80% $3.95 per EU = $15,800

4A-105


AACSB: AnalyticAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: ApplicationLearning Objective: 04A-02 Compute the equivalent units of production using the weighted-average methodLearning Objective: 04A-03 Compute the cost per equivalent unit using the weighted-average methodLearning Objective: 04A-04 Assign costs to units using the weighted-average methodLearning Objective: 04A-06 Compute the equivalent units of production using the FIFO methodLearning Objective: 04A-07 Compute the cost per equivalent unit using the FIFO methodLearning Objective: 04A-08 Assign costs to units using the FIFO methodLevel: Medium

69. Dana Inc. uses the FIFO method in its process costing system. The following data concern the operations of the company's first processing department for a recent month.

Required:



4A-106


FIFO method:a. Units started and completed during the period = Units completed during the period - Units inbeginning work in process inventory = 14,600 - 700 = 13,900

4A-107


AACSB: AnalyticAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: ApplicationLearning Objective: 04A-06 Compute the equivalent units of production using the FIFO methodLearning Objective: 04A-07 Compute the cost per equivalent unit using the FIFO methodLearning Objective: 04A-08 Assign costs to units using the FIFO methodLevel: Hard

70. Ermoin Inc. uses the FIFO method in its process costing system. The following data concern the operations of the company's first processing department for a recent month.

Required:



4A-108


FIFO method:Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 16,000 - 500 = 15,500

4A-109


AACSB: AnalyticAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: ApplicationLearning Objective: 04A-06 Compute the equivalent units of production using the FIFO methodLearning Objective: 04A-07 Compute the cost per equivalent unit using the FIFO methodLearning Objective: 04A-08 Assign costs to units using the FIFO methodLevel: Hard

71. Deluz Corporation uses the FIFO method in its process costing. The following data pertain to its Assembly Department for August.

Required:

Compute the equivalent units of production for both materials and conversion costs for the Assembly Department for August using the FIFO method.


4A-110


72. The following data pertain to the Milling Department of Gehle Corporation for July. The company uses the FIFO method in its process costing.

Required:

Compute the equivalent units of production for both materials and conversion costs for the Milling Department for July using the FIFO method.



4A-111


73. Froment Inc. uses the FIFO method in its process costing system. The following data concern the operations of the company's first processing department for a recent month.

Required:

Using the FIFO method, determine the equivalent units of production for materials and conversion costs.

FIFO method:Units started and completed during the period = Units started into production during the period - Units in ending work in process inventory = 28,000 - 100 = 27,900


4A-112


74. Glazener Corporation uses the FIFO method in its process costing. The following data pertain to its Assembly Department for June.

Required:

Determine the equivalent units of production for the Assembly Department for June using the FIFO method.



4A-113


75. The following data have been provided by Bicknese Corporation for the Circuit Prep Department. The company uses the FIFO method in its process costing.

Required:

Determine the equivalent units of production for the Circuit Prep Department for August using the FIFO method.

FIFO method:


4A-114


76. Clasby Corporation uses the FIFO method in its process costing. The following data concern the company's Assembly Department for the month of January.

Required:

Compute the costs per equivalent unit for the Assembly Department for January using the FIFO method.

FIFO method:

AACSB: AnalyticAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: ApplicationLearning Objective: 04A-07 Compute the cost per equivalent unit using the FIFO methodLevel: Easy

4A-115


77. Kortge Corporation uses the FIFO method in its process costing. The following data concern the company's Mixing Department for the month of August.

Required:

Compute the cost per equivalent unit for materials and conversion for the Mixing Department for August using the FIFO method.

FIFO method:

AACSB: AnalyticAICPA BB: Critical ThinkingAICPA FN: MeasurementBloom's: ApplicationLearning Objective: 04A-07 Compute the cost per equivalent unit using the FIFO methodLevel: Easy

4A-116


78. Dung Corporation uses the FIFO method in its process costing system. The following data concern the company's Assembly Department for the month of August.

Required:

Determine the cost of ending work in process inventory and the cost of units transferred out of the department during August using the FIFO method.

FIFO method:

4A-117



79. The following data has been provided by Palafox Inc., a company that uses the FIFO method in its process costing system. The data concern the company's Shaping Department for the month of March.

Required:

Determine the cost of ending work in process inventory and the cost of the units transferred out of the department during March using the FIFO method.

FIFO method:

4A-118



4A-119

Chap004A

Documents

Transcript of Chap004A