Process Costing Using the FIFO Method

Chapter 4 Supplement Process Costing Using the FIFO Method True/False 1. (Appendix) Any difference in the equivalent units calculated under the weighted-average and the FIFO methods is due to the units in the ending work in process inventory. Level: Easy LO: 2,6 Ans: F 2. (Appendix) There is no difference in the unit costs computed under the weighted-average and FIFO methods of process costing if there are no beginning work in process inventories. Level: Hard LO: 4,8 Ans: T 3. (Appendix) In a process costing production report, the “Cost to be accounted for” will be the same whether the weighted-average or the FIFO method is used. Level: Medium LO: 5,9 Ans: T 4. (Appendix) Under the FIFO method of product costing, equivalent units of production consider units in the beginning inventory as if they were started and completed during the current period. Level: Medium LO: 6 Ans: F 5. (Appendix) The production report of a company using the FIFO cost method likely would show goods transferred from a department in two parts--one part consisting of units from the beginning inventory completed and transferred, and the other part consisting of units that were both started and completed during the month. Level: Medium LO: 7 Ans: T 6. (Appendix) In computing the cost per equivalent unit on the production report, costs in the beginning work in process inventory are kept separate from current period costs when the FIFO method is used. Level: Medium LO: 8 Ans: T 7. (Appendix) A major advantage of the FIFO method is that it allows managers to judge the performance of the current period independently of the performance of the prior period. Level: Medium LO: 9,10 Ans: T 8. (Appendix) Under a JIT inventory system, the differences between FIFO and weighted-average costing methods are reduced. Level: Easy LO: 9,10 Ans: T 1 9. (Appendix) When the FIFO method is used to prepare a production report, costs to the next department are accounted for in two separate blocks. Level: Easy LO: 9 Ans: T Multiple Choice 10. (Appendix) A process costing system was used for a department that began operations in January. Approximately the same number of physical units, at the same degree of completion were in work in process at the end of both January and February. Monthly conversion costs are allocated between ending work in process and units completed. Compared to the FIFO method, would the weighted-average method use the same or a greater number of equivalent units to calculate the monthly allocations? A) A Above B) B Above C) C Above D) D Above Source: CPA, adapted Level: Hard LO: 2,6 Ans: D 11. (Appendix) 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. Level: Medium LO: 2,6 Ans: C 12. (Appendix) 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. Level: Medium LO: 2,6 Ans: D 2 13. (Appendix) 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. Level: Medium LO: 6 Ans: D 14. (Appendix) Ebart Company uses the FIFO method in its process costing system. The first processing department, the Welding Department, started the month with 14,000 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 $20,580. An additional 53,000 units were started into production during the month. There were 17,000 units in the ending work in process inventory of the Welding Department that were 20% complete with respect to conversion costs. A total of $80,660 in conversion costs were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for the month on the department’s production report? (Round off to three decimal places.) A) $1.522 B) $2.100 C) $1.850 D) $1.511 Level: Medium LO: 6,7,8 Ans: C 15. (Appendix) Eden Company uses the FIFO method in its process costing system. The first processing department, the Welding Department, started the month with 10,000 units in its beginning work in process inventory that were 50% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $35,500. An additional 76,000 units were started into production during the month. There were 10,000 units in the ending work in process inventory of the Welding Department that were 80% complete with respect to conversion costs. A total of $541,150 in conversion costs were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for the month on the department’s production report? (Round off to three decimal places.) A) $6.850 B) $7.120 C) $6.705 D) $7.100 Level: Medium LO: 6,7,8 Ans: A 3 16. (Appendix) Maenhout 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 $31,500 at the beginning of September. Additional conversion costs of $172,396 were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for September on the Casting Department’s production report? (Round off to three decimal places.) A) $2.399 B) $2.694 C) $2.500 D) $2.620 Level: Medium LO: 6,7,8 Ans: D 17. (Appendix) Maher 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 $8,960 at the beginning of September. Additional conversion costs of $671,560 were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for September on the Casting Department’s production report? (Round off to three decimal places.) A) $6.520 B) $6.923 C) $6.400 D) $6.131 Level: Medium LO: 6,7,8 Ans: A 4 18. (Appendix) Camel Company uses the FIFO method in its process costing system. The Assembly Department started the month with 5,000 units in its beginning work in process inventory that were 80% complete with respect to conversion costs. An additional 62,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 2,000 units in the ending work in process inventory of the Assembly Department that were 20% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month? A) 65,400 B) 65,000 C) 59,000 D) 61,400 Level: Medium LO: 6,7 Ans: D 19. (Appendix) Cawper Company uses the FIFO method in its process costing system. The Assembly Department started the month with 10,000 units in its beginning work in process inventory that were 10% complete with respect to conversion costs. An additional 55,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 19,000 units in the ending work in process inventory of the Assembly Department that were 20% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month? A) 49,800 B) 48,800 C) 64,000 D) 46,000 Level: Medium LO: 6,7 Ans: B 20. (Appendix) Kapstein 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) 53,800 B) 48,600 C) 55,320 D) 54,680 Level: Medium LO: 6,7 Ans: D 5 21. (Appendix) Kalra 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) 65,500 B) 76,780 C) 74,700 D) 75,340 Level: Medium LO: 6,7 Ans: D 22. (Appendix) Overhill Company uses the FIFO method in its process costing system. In the Cutting Department in June, units were 80% complete with respect to conversion in the beginning work in process inventory and 25% 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) $1.48 B) $1.50 C) $1.16 D) $1.82 Level: Medium LO: 6,8 Ans: B 23. (Appendix) Inacio Corporation uses the FIFO method in its process costing system. The first processing department, the Forming Department, started the month with 22,000 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 $38,500. An additional 71,000 units were started into production during the month and 72,000 units were completed and transferred to the next processing department. There were 21,000 units in the ending work in process inventory of the Forming Department that were 40% complete with respect to conversion costs. A total of $148,850 in conversion costs were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for the month on the Forming Department’s production report? (Round off to three decimal places.) A) $2.500 B) $2.015 C) $2.096 D) $2.290 Level: Medium LO: 6,8 Ans: D 6 24. (Appendix) Iyer Corporation uses the FIFO method in its process costing system. The first processing department, the Forming Department, started the month with 14,000 units in its beginning work in process inventory that were 20% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $3,360. An additional 92,000 units were started into production during the month and 95,000 units were completed and transferred to the next processing department. There were 11,000 units in the ending work in process inventory of the Forming Department that were 10% complete with respect to conversion costs. A total of $92,367 in conversion costs were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for the month on the Forming Department’s production report? (Round off to three decimal places.) A) $1.004 B) $0.990 C) $1.200 D) $0.903 Level: Medium LO: 6,8 Ans: B 25. (Appendix) Qimper 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 $38,069 at the beginning of March. Additional conversion costs of $444,047 were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for March on the Cutting Department’s production report? (Round off to three decimal places.) A) $7.956 B) $8.223 C) $8.106 D) $8.240 Level: Medium LO: 6,8 Ans: C 7 26. (Appendix) Quis 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 $26,880 at the beginning of March. Additional conversion costs of $190,130 were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for March on the Cutting Department’s production report? (Round off to three decimal places.) A) $3.866 B) $3.834 C) $4.045 D) $4.000 Level: Medium LO: 6,8 Ans: A 27. (Appendix) Williams Company uses the FIFO method in its process costing system. The beginning work in process inventory in a particular department consisted of 10,000 units, 100% complete with respect to materials and 60% with respect to conversion costs. The total cost in the beginning work in process inventory was $48,200. During the month, 25,000 units were transferred out of the department. The costs per equivalent unit were computed to be $3.10 for materials and $4.50 for conversion costs. The total cost of the units completed and transferred out of the department was: A) $190,000 B) $189,200 C) $180,200 D) $132,000 Level: Hard LO: 6,9 Ans: C 8 28. (Appendix) Walden Company has a process costing system and uses the FIFO method. All materials are introduced at the beginning of the process in Department One. The following information is available for the month of January for Department One: What are the equivalent units for the month of January? A) A Above B) B Above C) C Above D) D Above Source: CPA, adapted Level: Medium LO: 6 Ans: D 29. (Appendix) Mann Company uses the FIFO method in its process costing system. Department A is the first stage of the company’s production process. The following information is available for conversion costs for the month of April in Department A: The equivalent units for conversion costs are: A) 320,000 B) 324,000 C) 336,000 D) 360,000 Source: CPA, adapted Level: Easy LO: 6 Ans: B 9 30. (Appendix) Laurie Company uses the FIFO method in its process costing system. Department A is the first stage of Laurie Company’s production process. The following information is available for conversion costs for the month of May for Department A: The equivalent units of production for conversion costs for the month are: A) 42,000 units B) 38,000 units C) 44,000 units D) 36,000 units Level: Medium LO: 6 Ans: A 31. (Appendix) Richardson Company uses the FIFO method in its process costing system. During June, 40,000 units were completed in Department M. Of this total, 5,000 were in the beginning work in process and the remainder were started and completed during the month. Materials are added at the beginning of the process. A total of 10,000 units were in work in process at June 30; these units were 80% complete with respect to conversion costs. The work in process at June 1 was 40% complete with respect to conversion costs. The equivalent units for conversion costs were: A) 39,000 units B) 45,000 units C) 46,000 units D) 48,000 units Level: Medium LO: 6 Ans: C 32. (Appendix) Gabel Corporation uses the FIFO method in its process costing system. The Grinding Department started the month with 10,000 units in its beginning work in process inventory that were 70% complete with respect to conversion costs. An additional 85,000 units were transferred in from the prior department during the month to begin processing in the Grinding Department. During the month 81,000 units were completed in the Grinding Department and transferred to the next processing department. There were 14,000 units in the ending work in process inventory of the Grinding Department that were 90% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Grinding Department for the month? A) 86,600 B) 93,600 C) 81,000 D) 89,000 Level: Medium LO: 6 Ans: A 10 33. (Appendix) Gabriel Corporation uses the FIFO method in its process costing system. The Grinding Department started the month with 15,000 units in its beginning work in process inventory that were 70% complete with respect to conversion costs. An additional 58,000 units were transferred in from the prior department during the month to begin processing in the Grinding Department. During the month 64,000 units were completed in the Grinding Department and transferred to the next processing department. There were 9,000 units in the ending work in process inventory of the Grinding Department that were 90% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Grinding Department for the month? A) 64,000 B) 72,100 C) 61,600 D) 52,000 Level: Medium LO: 6 Ans: C 34. (Appendix) Osman 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) 59,040 B) 54,000 C) 56,760 D) 51,400 Level: Medium LO: 6 Ans: C 35. (Appendix) Oreilley 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) 34,460 B) 32,500 C) 27,500 D) 32,870 Level: Medium LO: 6 Ans: D 11 36. (Appendix) Steven Company uses the FIFO method in its process costing system. Department A’s beginning work in process inventory consisted of 15,000 units, 100% complete with respect to materials and 40% complete with respect to conversion costs. The total dollar value of this inventory was $31,000. A total of 40,000 units were transferred out during the month. The costs per equivalent unit were computed to be $1.30 for materials and $2.20 for conversion costs. The cost of the units completed and transferred out was: A) $140,000 B) $138,300 C) $131,700 D) $118,500 Level: Medium LO: 9 Ans: B 37. (Appendix) Marlow Company uses the FIFO method in its process costing system. Department A’s beginning work in process inventory consisted of 12,000 units, 100% complete with respect to materials cost and 60% complete with respect to conversion costs. The total cost in the beginning work in process inventory was $56,400. A total of 25,000 units were transferred out during the month. The cost per equivalent unit was computed to be $3.40 for materials and $4.70 for conversion costs. The total cost of the units completed and transferred out was: A) $195,540 B) $146,100 C) $202,500 D) $184,260 Level: Medium LO: 9 Ans: D 38. (Appendix) Tanner 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 $7,872 at the beginning of March. The cost per equivalent unit for conversion costs for March was $1.10. How much conversion cost would be assigned to the units completed and transferred out of the department during March? A) $52,404 B) $59,620 C) $60,276 D) $57,200 Level: Medium LO: 9 Ans: C 12 39. (Appendix) Tanguy 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 $7,350 at the beginning of March. The cost per equivalent unit for conversion costs for March was $4.10. How much conversion cost would be assigned to the units completed and transferred out of the department during March? A) $150,675 B) $180,400 C) $158,025 D) $157,850 Level: Medium LO: 9 Ans: C Use the following information to answer 40-43 (Appendix) Harward Company’s Staining department recorded the following activity in June: All materials are added at the beginning of the process in the Staining Department. 40. (Appendix) The equivalent units for labor and overhead for June, using the FIFO method, were: A) 46,000 units B) 49,800 units C) 43,200 units D) 52,600 units Level: Medium LO: 6 Ans: B 41. The equivalent units for labor and overhead for June, using the weighted-average method, were: A) 52,600 units B) 62,000 units C) 50,000 units D) 46,000 units Level: Medium LO: 2 Ans: A 13 42. (Appendix) The equivalent units for materials for June, using the FIFO method, were: A) 46,000 units B) 42,000 units C) 58,000 units D) 50,000 units Level: Medium LO: 6 Ans: D 43. The equivalent units for materials for June, using the weighted-average method, were: A) 58,000 units B) 52,600 units C) 46,000 units D) 60,000 units Level: Medium LO: 2 Ans: A Use the following information to answer 44-47 (Appendix) Activity in Saggers Company’s Assembly Department for the month of March follows: 44. The equivalent units for labor and overhead for March, using the weighted-average method, are: A) 69,600 units B) 67,800 units C) 71,000 units D) 69,000 units Level: Medium LO: 2 Ans: B 45. The equivalent units for materials for March, using the weighted-average method, are: A) 69,000 units B) 65,000 units C) 68,400 units D) 67,000 units Level: Medium LO: 2 Ans: C 46. (Appendix) The equivalent units for labor and overhead for March, using the FIFO method, are: A) 63,100 units B) 65,000 units C) 62,500 units D) 65,100 units Level: Medium LO: 6 Ans: D 14 47. (Appendix) The equivalent units for materials for March, using the FIFO method, are: A) 64,800 units B) 59,800 units C) 66,000 units D) 67,200 units Level: Medium LO: 6 Ans: A Use the following information to answer 48-51 (Appendix) Levitt Company uses a process costing system. All direct materials are added at the beginning of the process. Levitt’s production quantity schedule for November is reproduced below. 48. (Appendix) Using the FIFO method, the equivalent units for direct materials for November are: A) 5,000 units B) 6,000 units C) 4,400 units D) 3,800 units Source: CMA, adapted Level: Medium LO: 6 Ans: A 49. (Appendix) Using the FIFO method, the equivalent units for conversion costs for November are: A) 3,400 units B) 3,800 units C) 4,000 units D) 4,400 units Source: CMA, adapted Level: Medium LO: 6 Ans: B 50. Using the weighted-average method, the equivalent units for direct materials for November are: A) 3,400 units B) 4,400 units C) 5,000 units D) 6,000 units Source: CMA, adapted Level: Medium LO: 2 Ans: D 15 51. Using the weighted-average method, the equivalent units for conversion costs for November are: A) 3,400 units B) 3,800 units C) 4,000 units D) 4,400 units Source: CMA, adapted Level: Medium LO: 2 Ans: D Use the following information to answer 52-53 (Appendix) Qu 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. 52. How many units were started AND completed during the month in the first processing department? A) 8,400 B) 7,100 C) 6,200 D) 9,300 Level: Medium LO: 7 Refer To: 04S_04 Ans: C 53. The cost per equivalent unit for conversion costs for the first department for the month is closest to: A) $29.89 B) $34.07 C) $31.07 D) $31.38 Level: Medium LO: 6,8 Ans: A 16 Use the following information to answer 54-60 (Appendix) Mullins 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. 54. What are the equivalent units for materials for the month in the first processing department? A) 975 B) 8,250 C) 9,300 D) 7,100 Level: Medium LO: 6 Ans: B 55. What are the equivalent units for conversion costs for the month in the first processing department? A) 8,095 B) 7,100 C) 9,300 D) 750 Level: Medium LO: 6 Ans: A 56. The cost per equivalent unit for materials for the month in the first processing department is closest to: A) $20.42 B) $21.90 C) $19.31 D) $17.13 Level: Medium LO: 8 Ans: C 17 57. The cost per equivalent unit for conversion costs for the first department for the month is closest to: A) $48.79 B) $45.20 C) $44.68 D) $43.05 Level: Medium LO: 8 Ans: D 58. The cost per equivalent whole unit for the month in the first processing department is closest to: A) $62.36 B) $76.27 C) $66.10 D) $58.23 Level: Medium LO: 8 Ans: A 59. The total cost transferred from the first processing department to the next processing department during the month is closest to: A) $490,382 B) $579,948 C) $507,800 D) $541,500 Level: Medium LO: 9 Ans: A 60. The cost of ending work in process inventory in the first processing department according to the company’s cost system is closest to: A) $51,114 B) $46,770 C) $93,540 D) $60,801 Level: Medium LO: 9 Ans: A 18 Use the following information to answer 61-63 (Appendix) Puri 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. 61. What are the equivalent units for materials for the month in the first processing department? A) 605 B) 6,200 C) 4,700 D) 5,365 Level: Medium LO: 6 Ans: D 62. The cost per equivalent unit for conversion costs for the first department for the month is closest to: A) $15.20 B) $18.33 C) $15.96 D) $16.14 Level: Medium LO: 8 Ans: A 63. The total cost transferred from the first processing department to the next processing department during the month is closest to: A) $159,900 B) $151,800 C) $174,549 D) $144,540 Level: Medium LO: 9 Ans: D 19 Use the following information to answer 64-65 (Appendix) Normand 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. 64. What are the equivalent units for materials for the month in the first processing department? A) 4,900 B) 1,200 C) 6,310 D) 7,100 Level: Medium LO: 6 Ans: C 65. The cost per equivalent unit for conversion costs for the first department for the month is closest to: A) $45.66 B) $52.86 C) $47.94 D) $48.14 Level: Medium LO: 8 Ans: A 20 Use the following information to answer 66-67 (Appendix) Ozdemir 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. 66. What are the equivalent units for conversion costs for the month in the first processing department? A) 490 B) 4,300 C) 4,970 D) 5,200 Level: Medium LO: 6 Ans: C 67. The cost per equivalent unit for materials for the month in the first processing department is closest to: A) $16.36 B) $14.38 C) $16.62 D) $15.01 Level: Medium LO: 8 Ans: D Use the following information to answer 68-69 (Appendix) The information below was obtained from the records of Bapst Company for the month of May. The company uses the FIFO method in its process costing system. All materials are added at the beginning of the manufacturing process. 21 68. The equivalent units for material for the month are: A) 21,600 units B) 22,500 units C) 16,000 units D) 20,000 units Level: Medium LO: 6 Ans: D 69. The equivalent units for labor and overhead for the month are: A) 17,600 units B) 18,500 units C) 19,700 units D) 21,600 units Level: Medium LO: 6 Ans: C Use the following information to answer 70-72 (Appendix) Marlan Manufacturing produces a product that passes through two processing departments. The units from the Molding Department are completed in the Assembly Department. The activity in the Assembly Department for the current month is presented below. Marlan uses the FIFO method in its process costing system. 70. The equivalent units (with respect to the Molding Department’s costs) transferred from the Molding Department to the Assembly during the month were: A) 30,000 units B) 38,000 units C) 40,800 units D) 42,000 units Source: CMA, adapted Level: Medium LO: 6 Ans: D 71. The equivalent units for materials for the Assembly Department during the month were: A) 30,000 units B) 38,000 units C) 40,800 units D) 42,000 units Source: CMA, adapted Level: Medium LO: 6 Ans: B 22 72. The equivalent units for conversion costs for the Assembly Department during the month were: A) 36,800 units B) 38,000 units C) 40,800 units D) 42,800 units Source: CMA, adapted Level: Medium LO: 6 Ans: C Essay 73. (Appendix) Dachuna 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: Prepare a production report for the department using the FIFO method. Level: Hard LO: 6,7,8,9 23 Ans: 24 74. (Appendix) Dahal 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: Prepare a production report for the department using the FIFO method. Level: Hard LO: 6,7,8,9 25 Ans: 26 75. (Appendix) Ebert 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 units transferred out of the department during the month. (d.) Determine the cost of ending work in process inventory in the department. Level: Hard LO: 6,7,8,9 27 Ans: a. through d. can be answered by completing a production report as follows: 28 76. (Appendix) Edwards 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 units transferred out of the department during the month. (d.) Determine the cost of ending work in process inventory in the department. Level: Hard LO: 6,7,8,9 29 Ans: a. through d. can be answered by completing a production report as follows: 30 77. (Appendix) Fuller 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 by compiling the “Quantity Schedule and Equivalent Units” portion of the production report. Level: Medium LO: 6,7 Ans: 31 78. (Appendix) Fulghieri 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 by compiling the “Quantity Schedule and Equivalent Units” portion of the production report. Level: Medium LO: 6,7 Ans: 79. (Appendix) Toefield Corporation uses the FIFO method in its process costing. The following data pertain to its Assembly Department for March. Required: Prepare the Quantity Schedule and Equivalent Units section of the production report for the Assembly Department for March using the FIFO method. Level: Medium LO: 6,7 32 Ans: FIFO method: Quantity Schedule and Equivalent Units 80. (Appendix) The following data have been provided by Felux Corporation. The company uses the FIFO method in its process costing. Required: Prepare the Quantity Schedule and Equivalent Units section of the production report for the Circuit Prep Department for October using the FIFO method. Level: Medium LO: 6,7 33 Ans: FIFO method: Quantity Schedule and Equivalent Units 81. (Appendix) Voyer Corporation uses the FIFO method in its process costing. The following data pertain to its Assembly Department for June. Required: Compute the equivalents units of production for both materials and conversion costs for the Assembly Department for June using the FIFO method. Show your work! Level: Medium LO: 6 34 Ans: FIFO method: 82. (Appendix) The following data pertain to the Milling Department of Vario Corporation for August. The company uses the FIFO method in its process costing. Required: Compute the equivalents units of production for both materials and conversion costs for the Assembly Department for August using the FIFO method. Show your work! Level: Medium LO: 6 Ans: FIFO method: 35 83. (Appendix) Rauls Corporation uses the FIFO method in its processing costing. The following data concern the company’s Assembly Department for the month of January. Required: Prepare the Costs per Equivalent Unit section of the Assembly Department’s Production Report for January using the FIFO method. Level: Easy LO: 8 Ans: FIFO method: 84. (Appendix) Hayek Corporation uses the FIFO method in its processing costing. The following data concern the company’s Mixing Department for the month of October. Required: Compute the cost per equivalent unit section for materials and conversion for the Mixing Department for October using the FIFO method. Level: Easy LO: 8 Ans: FIFO method: 36 85. (Appendix) Mottai Corporation uses the FIFO method in its processing costing system. The following data concern the company’s Assembly Department for the month of October. Required: Prepare the Cost Reconciliation section of the Assembly Department’s Production Report for October using the FIFO method. Level: Medium LO: 9 Ans: FIFO method: 37 86. (Appendix) The following data has been provided by Klemm Inc., a company that uses the FIFO method in its processing costing system. The data concern the company’s Shaping Department for the month of July. Required: Prepare the Cost Reconciliation section of the Shaping Department’s Production Report for July using the FIFO method. Level: Medium LO: 9 Ans: FIFO method: 38