Professional Documents
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ID 5/e:4-10 5/e:4-9 5/e:4-15 6/e:4-15 5/e:4-2 4/e:4-170 4/e:4-169 New, 7/11/07,C1 New, 7/11/07,D2 7/e:4-27 7/e:4-38 7/e:4-36
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4A-1
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New,5/27/97,Q7 5/e:4-55 6/e:4-33 New,5/25/97,C7 New,5/27/97,K7 1/e:3-15 2/e:3-20 4/e:4-188 5/e:4-47 New,5/27/97,G7 New,5/27/97,O7 5/e:4-33 New,5/27/97,T7 7/12/2007 Single MC L2 7/12/2007 Sngle MC M2 7/e:4-47 to 50 6/e:4-41 to 43 5/e:4-16 to 19 6/e:4-29 to 30 New 11/18/00 M5 New 11/18/00 P5 New 11/18/00 Q5 New 11/18/00 N5 New 11/18/00 O5 5/e:4-42 to 46
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4A-2
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7/12/2007 Multi MC K2 7/12/2007 Multi MC L2 2/e:3-P3-4 New,5/28/97,D7 New,5/28/97,E7 8/8/2004 Problem G4 8/8/2004 Problem H4 New,5/28/97,F7 8/8/2004 Problem C4 8/8/2004 Problem D4 8/8/2004 Problem K4 8/8/2004 Problem L4 8/8/2004 Problem P4 8/8/2004 Problem Q4
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4A-3
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
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. $8.50 B. $8.31 C. $8.25 D. $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. $5.916 B. $5.340 C. $5.220 D. $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. $1.40 B. $1.35 C. $1.21 D. $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. $2.80 B. $2.29 C. $3.01 D. $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. $5.77 B. $5.72 C. $5.91 D. $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 costs B. 0 units C. 8,000 units, 50% complete with respect to conversion costs D. 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 costs B. 5,000 units, 40% complete with respect to conversion costs C. 13,000 units, 60% complete with respect to conversion costs D. 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. 77,000 B. 79,700 C. 65,000 D. 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. 57,960 B. 55,800 C. 51,000 D. 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 units B. 10,800 units C. 12,000 units D. 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 units B. 10,500 units C. 13,500 units D. 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 units B. Material, 100,000 units; labor and overhead, 91,000 units C. Material, 60,000 units; labor and overhead, 53,000 units D. 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:
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. 74,000 B. 75,100 C. 90,000 D. 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. 36,600 B. 35,800 C. 39,300 D. 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. $17,000 B. $20,000 C. $10,000 D. $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. $562,152 B. $561,720 C. $520,800 D. $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. $584,000 B. $43,000 C. $610,000 D. $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. $924,000 B. $888,000 C. $62,000 D. $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. 94,000 B. 100,300 C. 100,000 D. 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. $2.89 B. $2.98 C. $3.00 D. $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. 97,300 B. 91,300 C. 94,000 D. 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. $2.89 B. $2.98 C. $3.00 D. $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 units B. 190,000 units C. 172,000 units D. 168,000 units
38. If Nyman Company uses the weighted-average cost method, the March equivalent units for materials would be: A. 190,000 units B. 174,000 units C. 150,000 units D. 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 units B. 140,000 units C. 190,000 units D. 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 units B. 58,000 units C. 54,000 units D. 60,000 units
41. The equivalent units for labor and overhead for the month, using the FIFO method, are: A. 47,000 units B. 51,000 units C. 5,000 units D. 54,000 units
42. The equivalent units for material for the month, using the weighted-average method, are: A. 48,000 units B. 50,000 units C. 58,000 units D. 52,000 units
43. The equivalent units for labor and overhead for the month, using the weighted-average method, are: A. 50,000 units B. 51,000 units C. 47,000 units D. 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. $12.50 B. $3.00 C. $5.00 D. $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. $1.60 B. $10.00 C. $8.40 D. $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. 9,000 B. 375 C. 8,300 D. 8,715
47. What are the equivalent units for conversion costs for the month in the first processing department? A. 9,000 B. 8,500 C. 8,300 D. 150
48. The cost per equivalent unit for materials for the month in the first processing department is closest to: A. $27.70 B. $26.82 C. $28.13 D. $28.40
49. The cost per equivalent unit for conversion costs for the first department for the month is closest to: A. $48.50 B. $44.72 C. $42.59 D. $43.33
50. The cost of a completed unit transferred out of the department is closest to: A. $74.51 B. $68.27 C. $74.02 D. $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. $603,400 B. $597,619 C. $632,583 D. $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. $35,144 B. $16,775 C. $10,543 D. $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
53. What are the equivalent units for materials for the month in the first processing department? A. 10,500 B. 960 C. 8,300 D. 9,530
54. The cost per equivalent unit for conversion costs for the first department for the month is closest to: A. $38.96 B. $43.33 C. $40.98 D. $40.91
55. The total cost transferred from the first processing department to the next processing department during the month is closest to: A. $449,250 B. $528,560 C. $485,100 D. $473,100
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:
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.
56. How many units were started AND completed during the month in the first processing department? A. 6,100 B. 5,500 C. 7,600 D. 7,000
57. The cost per equivalent unit for conversion costs for the first department for the month is closest to: A. $42.49 B. $43.96 C. $45.00 D. $41.87
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:
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.
58. What are the equivalent units for materials for the month in the first processing department? A. 1,680 B. 7,150 C. 8,200 D. 5,200
59. The cost per equivalent unit for conversion costs for the first department for the month is closest to: A. $40.57 B. $45.33 C. $39.31 D. $37.44
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:
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.
60. What are the equivalent units for conversion costs for the month in the first processing department? A. 6,600 B. 440 C. 7,150 D. 7,600
61. The cost per equivalent unit for materials for the month in the first processing department is closest to: A. $16.87 B. $15.65 C. $15.09 D. $18.00
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.
62. The equivalent units for materials for the month of August are: A. 75,000 units B. 85,000 units C. 87,500 units D. 95,000 units
63. The equivalent units for labor and overhead for the month of August are: A. 85,000 units B. 95,000 units C. 87,500 units D. 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. $211,000 B. $197,000 C. $186,000 D. $193,000
65. In the department's cost reconciliation report for February, the total cost accounted for would be: A. $29,000 B. $412,000 C. $215,000 D. $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. $15,000 B. $63,000 C. $37,000 D. $26,000
67. In the department's cost reconciliation report for May, the total cost to be accounted for would be: A. $48,000 B. $251,000 C. $262,000 D. $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: 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-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
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 Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Comprehension Learning Objective: 04A-02 Compute the equivalent units of production using the weighted-average method Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Level: 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 Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Comprehension Learning Objective: 04A-03 Compute the cost per equivalent unit using the weighted-average method Learning Objective: 04A-07 Compute the cost per equivalent unit using the FIFO method Level: 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 Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Comprehension Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Level: 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 Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Comprehension Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Level: Medium
5. Under the FIFO method, costs per equivalent unit will contain only costs from the current period. TRUE
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Comprehension Learning Objective: 04A-07 Compute the cost per equivalent unit using the FIFO method Level: Medium
6. From the standpoint of cost control, the weighted-average method of process costing is superior to the FIFO method. FALSE
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Comprehension Learning Objective: 04A-08 Assign costs to units using the FIFO method Level: Medium
7. The weighted-average method and the FIFO method of process costing use the same manufacturing accounts. TRUE
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Comprehension Learning Objective: 04A-08 Assign costs to units using the FIFO method Level: 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 Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Comprehension Learning Objective: 04A-09 Prepare a cost reconciliation report using the FIFO method Level: 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 Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Comprehension Learning Objective: 04A-09 Prepare a cost reconciliation report using the FIFO method Level: Medium
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.
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Comprehension Learning Objective: 04A-02 Compute the equivalent units of production using the weighted-average method Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Level: Medium
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.
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Comprehension Learning Objective: 04A-02 Compute the equivalent units of production using the weighted-average method Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Level: Medium
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.
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Comprehension Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Level: Medium
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.
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Comprehension Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Level: Medium
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. $8.50 B. $8.31 C. $8.25 D. $7.84 FIFO method Units 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: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Learning Objective: 04A-07 Compute the cost per equivalent unit using the FIFO method Level: 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. $5.916 B. $5.340 C. $5.220 D. $5.213 FIFO method Units started and completed during the period = Units started into production during the period - Units in ending work in process inventory = 89,000 - 24,000 = 65,000
4A-45
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Learning Objective: 04A-07 Compute the cost per equivalent unit using the FIFO method Level: Medium
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. $1.40 B. $1.35 C. $1.21 D. $1.64 FIFO method Units 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 period 25,000 + 140,000 = X + 135,000 X = 25,000 + 140,000 - 135,000 = 30,000 Y = X 1/3 = 30,000 1/3 = 10,000 Z = 5,000 + 110,000 + Y = 5,000 + 110,000 + 10,000 = 125,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Learning Objective: 04A-07 Compute the cost per equivalent unit using the FIFO method Level: Medium
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. $2.80 B. $2.29 C. $3.01 D. $2.58 FIFO method Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 86,000 - 23,000 = 63,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Learning Objective: 04A-07 Compute the cost per equivalent unit using the FIFO method Level: Medium
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. $5.77 B. $5.72 C. $5.91 D. $6.04 FIFO method Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 58,400 - 8,400 = 50,000
4A-49
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Learning Objective: 04A-07 Compute the cost per equivalent unit using the FIFO method Level: Medium
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 costs B. 0 units C. 8,000 units, 50% complete with respect to conversion costs D. 4,000 units, 100% complete with respect to conversion costs FIFO method Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 40,000 - 6,000 = 34,000
2,000 + 34,000 + X = 40,000 X = 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 period 6,000 + 42,000 = Y + 40,000 Y = 6,000 + 42,000 - 40,000 = 8,000 Y Z=X 8,000 Z = 4,000 Z = 4,000 8,000 = 0.50
4A-50
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Level: 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 costs B. 5,000 units, 40% complete with respect to conversion costs C. 13,000 units, 60% complete with respect to conversion costs D. 4,600 units, 40% complete with respect to conversion costs FIFO method Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 20,000 - 8,000 = 12,000
4,800 + 12,000 + X = 24,600 X = 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 period 8,000 + 25,000 = Y + 20,000 Y = 8,000 + 25,000 - 20,000 = 13,000 Y Z=X 13,000 Z = 7,800 Z = 7,800 13,000 = 0.60
4A-51
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Level: 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. 77,000 B. 79,700 C. 65,000 D. 72,200 FIFO method Units started and completed during the period = Units started into production during the period - Units in ending work in process inventory = 71,000 - 9,000 = 62,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Level: 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. 57,960 B. 55,800 C. 51,000 D. 55,920 FIFO method Units started and completed during the period = Units started into production during the period - Units in ending work in process inventory = 53,400 - 2,700 = 50,700
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Level: Medium
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 units B. 10,800 units C. 12,000 units D. 13,000 units FIFO method Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 12,000 - 4,000 = 8,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Level: Medium
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 units B. 10,500 units C. 13,500 units D. 13,000 units FIFO method Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 12,000 - 6,000 = 6,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Level: Medium
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 units B. Material, 100,000 units; labor and overhead, 91,000 units C. Material, 60,000 units; labor and overhead, 53,000 units D. Material, 80,000 units; labor and overhead, 79,000 units FIFO method Units started and completed during the period = Units started into production during the period - Units in ending work in process inventory = 80,000 - 30,000 = 50,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Level: Medium
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:
A. Option A B. Option B C. Option C D. Option D FIFO method Units started and completed during the period = Units started into production during the period - Units in ending work in process inventory = 7,500 - 1,000 = 6,500
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Level: Medium
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. 74,000 B. 75,100 C. 90,000 D. 73,000 FIFO method Units 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
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Level: Medium
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. 36,600 B. 35,800 C. 39,300 D. 34,800 FIFO method Units 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
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Level: Medium
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. $17,000 B. $20,000 C. $10,000 D. $22,500 FIFO method Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 80,000 - 15,000 = 65,000
4A-60
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-08 Assign costs to units using the FIFO method Level: 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. $562,152 B. $561,720 C. $520,800 D. $521,544
4A-61
FIFO method Units started and completed during the period = Units started into production during the period - Units in ending work in process inventory = 56,000 - 1,000 = 55,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-08 Assign costs to units using the FIFO method Level: 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. $584,000 B. $43,000 C. $610,000 D. $305,000 FIFO method
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-09 Prepare a cost reconciliation report using the FIFO method Level: 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. $924,000 B. $888,000 C. $62,000 D. $462,000 FIFO method
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-09 Prepare a cost reconciliation report using the FIFO method Level: 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. 94,000 B. 100,300 C. 100,000 D. 112,000 Weighted-average method
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-02 Compute the equivalent units of production using the weighted-average method Level: 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. $2.89 B. $2.98 C. $3.00 D. $3.08 Weighted-average method
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-03 Compute the cost per equivalent unit using the weighted-average method Level: 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. 97,300 B. 91,300 C. 94,000 D. 100,300 FIFO method Units started and completed during the period = Units started into production during the period - Units in ending work in process inventory = 100,000 - 18,000 = 82,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Level: Medium
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. $2.89 B. $2.98 C. $3.00 D. $3.09 FIFO method Units started and completed during the period = Units started into production during the period - Units in ending work in process inventory = 100,000 - 18,000 = 82,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-07 Compute the cost per equivalent unit using the FIFO method Level: 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 units B. 190,000 units C. 172,000 units D. 168,000 units FIFO method Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 190,000 - 40,000 = 150,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Level: Medium
4A-69
38. If Nyman Company uses the weighted-average cost method, the March equivalent units for materials would be: A. 190,000 units B. 174,000 units C. 150,000 units D. 166,000 units Weighted-average method
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-02 Compute the equivalent units of production using the weighted-average method Level: Medium
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 units B. 140,000 units C. 190,000 units D. 160,000 units Weighted-average method With lean production there should be no beginning or ending inventories.
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-02 Compute the equivalent units of production using the weighted-average method Level: Medium
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 units B. 58,000 units C. 54,000 units D. 60,000 units FIFO method Units started and completed during the period = Units started into production during the period - Units in ending work in process inventory = 50,000 - 10,000 = 40,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Level: Medium
4A-72
41. The equivalent units for labor and overhead for the month, using the FIFO method, are: A. 47,000 units B. 51,000 units C. 5,000 units D. 54,000 units FIFO method Units started and completed during the period = Units started into production during the period - Units in ending work in process inventory = 50,000 - 10,000 = 40,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Level: Medium
4A-73
42. The equivalent units for material for the month, using the weighted-average method, are: A. 48,000 units B. 50,000 units C. 58,000 units D. 52,000 units Weighted-average method Units in beginning work in process inventory + Units started into production = Units in ending work in process inventory + Units transferred to the next department Units 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
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-02 Compute the equivalent units of production using the weighted-average method Level: Medium
4A-74
43. The equivalent units for labor and overhead for the month, using the weighted-average method, are: A. 50,000 units B. 51,000 units C. 47,000 units D. 55,000 units Weighted-average method Units in beginning work in process inventory + Units started into production = Units in ending work in process inventory + Units transferred to the next department Units 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
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-02 Compute the equivalent units of production using the weighted-average method Level: Medium
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. $12.50 B. $3.00 C. $5.00 D. $9.50 FIFO method
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-07 Compute the cost per equivalent unit using the FIFO method Level: Medium
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. $1.60 B. $10.00 C. $8.40 D. $16.00 Weighted-average method
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-03 Compute the cost per equivalent unit using the weighted-average method Level: 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
46. What are the equivalent units for materials for the month in the first processing department? A. 9,000 B. 375 C. 8,300 D. 8,715 FIFO method Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 8,500 - 200 = 8,300
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Level: Medium
4A-79
47. What are the equivalent units for conversion costs for the month in the first processing department? A. 9,000 B. 8,500 C. 8,300 D. 150 FIFO method Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 8,500 - 200 = 8,300
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Level: Medium
4A-80
48. The cost per equivalent unit for materials for the month in the first processing department is closest to: A. $27.70 B. $26.82 C. $28.13 D. $28.40 FIFO method Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 8,500 - 200 = 8,300
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-07 Compute the cost per equivalent unit using the FIFO method Level: Medium
4A-81
49. The cost per equivalent unit for conversion costs for the first department for the month is closest to: A. $48.50 B. $44.72 C. $42.59 D. $43.33 FIFO method Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 8,500 - 200 = 8,300
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Level: Medium
4A-82
50. The cost of a completed unit transferred out of the department is closest to: A. $74.51 B. $68.27 C. $74.02 D. $70.29 FIFO method Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 8,500 - 200 = 8,300
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-08 Assign costs to units using the FIFO method Level: Medium
51. The total cost transferred from the first processing department to the next processing department during the month is closest to: A. $603,400 B. $597,619 C. $632,583 D. $614,400
4A-83
FIFO method Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 8,500 - 200 = 8,300
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-08 Assign costs to units using the FIFO method Level: Medium
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. $35,144 B. $16,775 C. $10,543 D. $26,358 FIFO method Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 8,500 - 200 = 8,300
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-08 Assign costs to units using the FIFO method Level: Medium
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:
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-86
53. What are the equivalent units for materials for the month in the first processing department? A. 10,500 B. 960 C. 8,300 D. 9,530 FIFO method Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 8,900 - 600 = 8,300
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Level: Medium
4A-87
54. The cost per equivalent unit for conversion costs for the first department for the month is closest to: A. $38.96 B. $43.33 C. $40.98 D. $40.91 FIFO method Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 8,900 - 600 = 8,300
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Level: Medium
55. The total cost transferred from the first processing department to the next processing department during the month is closest to: A. $449,250 B. $528,560 C. $485,100 D. $473,100
4A-88
FIFO method Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 8,900 - 600 = 8,300
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-08 Assign costs to units using the FIFO method Level: Medium
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:
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.
56. How many units were started AND completed during the month in the first processing department? A. 6,100 B. 5,500 C. 7,600 D. 7,000 FIFO method Units started and completed during the period = Units started into production during the period - Units in ending work in process inventory = 7,000 - 1,500 = 5,500
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Level: Medium
4A-90
57. The cost per equivalent unit for conversion costs for the first department for the month is closest to: A. $42.49 B. $43.96 C. $45.00 D. $41.87 FIFO method Units started and completed during the period = Units started into production during the period - Units in ending work in process inventory = 7,000 - 1,500 = 5,500
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-07 Compute the cost per equivalent unit using the FIFO method Level: Medium
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:
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-92
58. What are the equivalent units for materials for the month in the first processing department? A. 1,680 B. 7,150 C. 8,200 D. 5,200 FIFO method Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 6,100 - 900 = 5,200
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Level: Medium
4A-93
59. The cost per equivalent unit for conversion costs for the first department for the month is closest to: A. $40.57 B. $45.33 C. $39.31 D. $37.44 FIFO method Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 6,100 - 900 = 5,200
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-07 Compute the cost per equivalent unit using the FIFO method Level: Medium
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:
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-95
60. What are the equivalent units for conversion costs for the month in the first processing department? A. 6,600 B. 440 C. 7,150 D. 7,600 FIFO method Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 6,800 - 200 = 6,600
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Level: Medium
4A-96
61. The cost per equivalent unit for materials for the month in the first processing department is closest to: A. $16.87 B. $15.65 C. $15.09 D. $18.00 FIFO method Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 6,800 - 200 = 6,600
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-07 Compute the cost per equivalent unit using the FIFO method Level: Medium
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.
62. The equivalent units for materials for the month of August are: A. 75,000 units B. 85,000 units C. 87,500 units D. 95,000 units FIFO method Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 75,000 - 10,000 = 65,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Level: Medium
4A-98
63. The equivalent units for labor and overhead for the month of August are: A. 85,000 units B. 95,000 units C. 87,500 units D. 82,500 units FIFO method Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 75,000 - 10,000 = 65,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Level: Medium
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. $211,000 B. $197,000 C. $186,000 D. $193,000 FIFO method
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-09 Prepare a cost reconciliation report using the FIFO method Level: Medium
4A-100
65. In the department's cost reconciliation report for February, the total cost accounted for would be: A. $29,000 B. $412,000 C. $215,000 D. $430,000 FIFO method
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-09 Prepare a cost reconciliation report using the FIFO method Level: Easy
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. $15,000 B. $63,000 C. $37,000 D. $26,000 FIFO method
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-09 Prepare a cost reconciliation report using the FIFO method Level: Medium
4A-102
67. In the department's cost reconciliation report for May, the total cost to be accounted for would be: A. $48,000 B. $251,000 C. $262,000 D. $131,000 FIFO method
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-09 Prepare a cost reconciliation report using the FIFO method Level: Easy
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 method 1. 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
$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: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-02 Compute the equivalent units of production using the weighted-average method Learning Objective: 04A-03 Compute the cost per equivalent unit using the weighted-average method Learning Objective: 04A-04 Assign costs to units using the weighted-average method Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Learning Objective: 04A-07 Compute the cost per equivalent unit using the FIFO method Learning Objective: 04A-08 Assign costs to units using the FIFO method Level: 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: 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-106
FIFO method: a. Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 14,600 - 700 = 13,900
4A-107
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Learning Objective: 04A-07 Compute the cost per equivalent unit using the FIFO method Learning Objective: 04A-08 Assign costs to units using the FIFO method Level: 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: 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-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: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Learning Objective: 04A-07 Compute the cost per equivalent unit using the FIFO method Learning Objective: 04A-08 Assign costs to units using the FIFO method Level: 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. FIFO method: Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 7,200 - 500 = 6,700
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. FIFO method: Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 5,700 - 900 = 4,800
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Level: Medium
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
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Level: Medium
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. FIFO method: Units started and completed during the period = Units completed during the period - Units in beginning work in process inventory = 4,300 - 800 = 3,500
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Level: Medium
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:
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-06 Compute the equivalent units of production using the FIFO method Level: Medium
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: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-07 Compute the cost per equivalent unit using the FIFO method Level: 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: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-07 Compute the cost per equivalent unit using the FIFO method Level: 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
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-08 Assign costs to units using the FIFO method Level: Medium
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
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Bloom's: Application Learning Objective: 04A-08 Assign costs to units using the FIFO method Level: Medium
4A-119