Exam 9: 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 materials for June?

Damesin 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..................................... 100 Percent complete with respect to materials...…. 90\% Percent complete with respect to conversion........ 30\% $\text {Costs in the beginning inventory:}$ Materials cost....................................................... \1 53 Conversion cost.................................................... \7 11 Units started into production during the month ... 25,000 Units completed and transferred out...................... 24,400 $\text {Costs added to production during the month:}$ Materials cost........................................................ \3 7,200 Conversion cost.................................................... \5 91,600 $\text {Work in process, ending:}$ Units in process................................... 700 Percent complete with respect to materials............ 70\% Percent complete with respect to conversion........ 40\% 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.

All production costs have been steadily rising in the Donner Company for several periods.The company maintains large work in process inventories.Donner Company's cost per equivalent unit computed using the FIFO method would be:

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 cost per equivalent unit of conversion cost for May is closest to:

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. -What are the equivalent units for conversion costs for the month in the first processing department?

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. -What are the equivalent units for conversion costs for the month in the first processing department?

When comparing the two process costing methods for the same company,equivalent units computed under the FIFO method will always be less than or equal to equivalent units computed under 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 labor and overhead for the month,using the FIFO method,is:

Pratt 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.............. 400 Materials costs............................................................ \6 ,000 Conversion costs........................................................ \1 0,600 Percent complete with respect to materials................ 70\% Percent complete with respect to conversion............... 55\% Units started into production during the month......... 9,900 Units transferred to the next department during the month........................................................................ 9,300 Materials costs added during the month.................... \2 00,700 Conversion costs added during the month................ \4 35,200 Ending work in process inventory: Units in ending work in process inventory................ 1,000 Percent complete with respect to materials.............. 55\% Percent complete with respect to conversion............ 25\% 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 conversion costs for the first department for the month is closest to:

In the cost reconciliation report,the costs accounted for equals the cost of ending work in process inventory plus the costs added during the period.

Mukluk Company uses the FIFO method in its process costing system.The conversion cost for the month of April is $5.00 per equivalent unit and the material cost is $2.90 per equivalent unit.At the beginning of the month,1,000 units were in process that were 100% complete with respect to materials and 30% complete with respect to conversion,with a total cost at that point of $2,400.If these units are fully complete by the end of the month,their total cost will be:

Edward 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 40% complete with respect to conversion costs.The conversion cost in this beginning work in process inventory was $12,800.An additional 94,000 units were started into production during the month.There were 14,000 units in the ending work in process inventory of the Welding Department that were 80% complete with respect to conversion costs.A total of $286,740 in conversion costs were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs? (Round off to three decimal places. )