Exam 9: Fifo Method

Kimbeth Manufacturing makes Dust Density Sensors (DDS),a safety device for the mining industry.The company uses a process costing system and has only a single processing department.The following information pertains to operations for the month of May: Units Beginning work in process inventory ..\ldots\ldots. 16,000 Started into production during May ......... 100,000 Completed during May \ldots\ldots\ldots\ldots\ldots\ldots\ldots\ldots\ldots\ldots 92,000 Ending work in process inventory \ldots\ldots\ldots\ldots\ldots. 24,000 The beginning work in process inventory was 60% complete with respect to materials and 20% complete with respect to conversion costs.The ending work in process inventory was 90% complete with respect to materials and 40% complete with respect to conversion costs.The costs were as follows: Materials Conversion Beginning work in process inventory ....... \ 54,560 \ 35,560 Costs incurred during May................. \ 468,000 \ 574,040 -Using the FIFO method,the equivalent units for May for conversion costs are:

Kimbeth Manufacturing makes Dust Density Sensors (DDS),a safety device for the mining industry.The company uses a process costing system and has only a single processing department.The following information pertains to operations for the month of May: Units Beginning work in process inventory ..\ldots\ldots. 16,000 Started into production during May ......... 100,000 Completed during May \ldots\ldots\ldots\ldots\ldots\ldots\ldots\ldots\ldots\ldots 92,000 Ending work in process inventory \ldots\ldots\ldots\ldots\ldots. 24,000 The beginning work in process inventory was 60% complete with respect to materials and 20% complete with respect to conversion costs.The ending work in process inventory was 90% complete with respect to materials and 40% complete with respect to conversion costs.The costs were as follows: Materials Conversion Beginning work in process inventory ....... \ 54,560 \ 35,560 Costs incurred during May................. \ 468,000 \ 574,040 -Using the weighted-average method,the total cost of the units in ending work in process inventory is closest to:

In October,one of the processing departments at Julian Corporation had ending work in process inventory of $14,000.During the month,$240,000 of costs were added to production and the cost of units transferred out from the department was $248,000.The company uses the FIFO method in its process costing system. Required: Construct a cost reconciliation report for the department for the month of October.

Lasswell Corporation uses the FIFO method in its process costing.The following data pertain to its Assembly Department for May. $\text { Units in process, May 1: }$ materials 55 \% complete, conversion 20\% complete........ 800 Units started into production during May.................... 8,900 Units completed and transferred to the next department 7,800 Units in process, May 31: materials 80\% complete, conversion 65\% complete 1,900 Required: Determine the equivalent units of production for the Assembly Department for May using the FIFO method.

In July,one of the processing departments at Keen Corporation had beginning work in process inventory of $19,000 and ending work in process inventory of $18,000.During the month,the cost of units transferred out from the department was $216,000.The company uses the FIFO method in its process costing system. -In the department's cost reconciliation report for July,the costs added to production in the department would be:

Roger Company uses the FIFO method in its process costing system.The following data are taken from the accounting records of a particular department for June: Beginning work in process inventory: Cost...................................................... \1 7,500 Units..................................................... 20,000 units Percentage completion: Materials.............................................. 100\% Conversion.......................................... 60\% Units completed and transferred out.... 75,000 units Cost per equivalent unit: Material.............................................. \1 .75 Conversion......................................... \0 .50 The cost of the 75,000 units transferred out of the department during June is:

The cost per equivalent unit under the FIFO method of process costing is equal to the cost of beginning work in process inventory plus the costs added during the period,all divided by the equivalent units of production for the period.

Fryer 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. $\text {Work in process, beginning:}$ Units in process........................................................... 200 Percent complete with respect to materials................. 60\% Percent complete with respect to conversion............... 20\% Units completed and transferred out during June........ 15,000 $\text {Work in process, ending:}$ Units in process................................................. 700 Percent complete with respect to materials...... 90\% Percent complete with respect to conversion.... 80\% Required: Using the FIFO method,determine the equivalent units of production for materials and conversion costs.

Winkle Company uses the FIFO method in its process costing system.At the beginning of March,the work in process inventory in the Blending Processing Center consisted of 5,000 units,90% complete with respect to conversion costs.At the end of the month,the work in process inventory consisted of 2,000 units that were 60% complete with respect to conversion costs.If 10,000 units were transferred to the next processing center during the month,the equivalent units for conversion costs were:

Details of the manufacturing activity in Amy Company's Assembly Department for the month of December are given below: Number Labor and Overhead of Units Percent Complete Work in process inventory, Dec.1.................. 10,000 70\% Started in assembly during the month........... 80,000 Work in process inventory, Dec.31................ 15,000 40\% All materials are added at the beginning of processing in the Assembly Department. -The equivalent units for material for the month,using the weighted-average method,is:

Moulgadi Corporation uses the FIFO method in its process costing system.Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in beginning work in process inventory.............. 700 Materials costs............................................................ \1 0,900 Conversion costs........................................................ \4 ,600 Percent complete with respect to materials................ 65\% Percent complete with respect to conversion............... 15\% Units started into production during the month......... 9,700 Units transferred to the next department during the month........................................................................ 8,800 Materials costs added during the month.................... \2 04,900 Conversion costs added during the month................ \3 62,600 Ending work in process inventory: Units in ending work in process inventory................ 1,600 Percent complete with respect to materials.............. 65\% Percent complete with respect to conversion............ 55\% 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. -The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to:

Details of the manufacturing activity in Amy Company's Assembly Department for the month of December are given below: Number Labor and Overhead of Units Percent Complete Work in process inventory, Dec.1.................. 10,000 70\% Started in assembly during the month........... 80,000 Work in process inventory, Dec.31................ 15,000 40\% All materials are added at the beginning of processing in the Assembly Department. -The equivalent units for labor and overhead for the month,using the weighted-average method,is:

Sharp Company has a process costing system.The following data relate to the company's Mixing Department for a recent month: Conversion Percentage Units of Completion Beginning work in process inventory ......... 5,000 60\% Units started into production .................... 40,000 Units completed and transferred out ......... 37,000 Ending work in process inventory.............. 8,000 25\% All materials are added at the beginning of the Mixing process. Required: a.Compute the equivalent units of production for materials using the FIFO method. b.Compute the equivalent units of production for conversion using the FIFO method. c.Compute the equivalent units of production for materials using the weighted-average method. d.Compute the equivalent units of production for conversion using the weighted-average method.

Details of the manufacturing activity in Amy Company's Assembly Department for the month of December are given below: Number Labor and Overhead of Units Percent Complete Work in process inventory, Dec.1.................. 10,000 70\% Started in assembly during the month........... 80,000 Work in process inventory, Dec.31................ 15,000 40\% All materials are added at the beginning of processing in the Assembly Department. -The equivalent units for material for the month,using the FIFO method,is:

Rabin Corporation uses the FIFO method in its process costing.The following data concern the company's Mixing Department for the month of August. Materials Conversion Work in process, August 1......................................... \1 8,724 \1 8,962 Cost added to production in the Mixing Department during August............................................................ \8 4,560 \9 8,303 Equivalent units of production for August.................. 6,040 4,990 Required: Compute the cost per equivalent unit for materials and conversion for the Mixing Department for August using the FIFO method.

The following information relates to the Mixing Department of Zaglav Products Company for the month of June.Zaglav uses a FIFO process costing system. $\text {Work in process, beginning (June 1):}$ Units in process........................................................... 8,000 Percent complete with respect to materials................. 100\% Percent complete with respect to conversion............... 75\% Units completed and transferred out during June........ 84,000 $\text {Work in process, ending (June 30):}$ Units in process................................................. 3,000 Percent complete with respect to materials...... 100\% Percent complete with respect to conversion.... 10\% -What are the Mixing Department's equivalent units related to conversion costs for June?

Malaviya Corporation uses the FIFO method in its process costing system.Operating data for the Casting Department for the month of September appear below: Percent Complete with Units Respect to Conversion Beginning work in process inventory.... 17,000 40\% Transferred in from the prior department during September....................... 72,000 Ending work in process inventory ......... 18,000 30\% According to the company's records,the conversion cost in beginning work in process inventory was $63,104 at the beginning of September.Additional conversion costs of $654,240 were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for September? (Round off to three decimal places. )

Osman Corporation uses the FIFO method in its process costing system.Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in beginning work in process inventory.............. 500 Materials costs........................................................... \1 0,000 Conversion costs........................................................ \1 0,500 Percent complete with respect to materials................ 70\% Percent complete with respect to conversion.............. 65\% Units started into production during the.................... 9,500 Units transferred to the next department during the month....................................................................... 8,600 Materials costs added during the month.................... \2 39,700 Conversion costs added during the month................. \2 61,500 Ending work in process inventory: Units in ending work in process inventory................ 1,400 Percent complete with respect to materials.............. 55\% Percent complete with respect to conversion............ 40\% 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. -The cost per equivalent unit for materials for the month in the first processing department is closest to:

Kimbeth Manufacturing makes Dust Density Sensors (DDS),a safety device for the mining industry.The company uses a process costing system and has only a single processing department.The following information pertains to operations for the month of May: Units Beginning work in process inventory ..\ldots\ldots. 16,000 Started into production during May ......... 100,000 Completed during May \ldots\ldots\ldots\ldots\ldots\ldots\ldots\ldots\ldots\ldots 92,000 Ending work in process inventory \ldots\ldots\ldots\ldots\ldots. 24,000 The beginning work in process inventory was 60% complete with respect to materials and 20% complete with respect to conversion costs.The ending work in process inventory was 90% complete with respect to materials and 40% complete with respect to conversion costs.The costs were as follows: Materials Conversion Beginning work in process inventory ....... \ 54,560 \ 35,560 Costs incurred during May................. \ 468,000 \ 574,040 -Assuming that Cherrington Company uses the FIFO method,what is the cost per equivalent unit for conversion costs for May to the nearest cent?

In November,one of the processing departments at Rullo Corporation had beginning work in process inventory of $23,000 and ending work in process inventory of $32,000.During the month,$267,000 of costs were added to production and the cost of units transferred out from the department was $258,000.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: