Question 1

The following data relate to the Blending Department of Tru-Color Paint Corporation for a recent month:  All materials are added prior to the beginning of work in the Blending Department. Assuming that Tru-Color Paint Corporation uses the weighted-average method,the equivalent units for conversion costs would be:

Accepted Answer

A) 44,400 
B) 42,600 
C) 46,000 
D) 48,000

Question 2

Under the FIFO method,unit costs would:

Accepted Answer

A) result from costs in the beginning inventory being added in with current period costs. 
B) contain some element of cost from the prior period. 
C) not contain some elements of cost from the prior period. 
D) not include costs incurred to complete beginning inventory.

Question 3

Muzyka 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. The cost per equivalent unit for conversion costs for the first department for the month is closest to:

Accepted Answer

A) $44.51 
B) $50.00 
C) $46.92 
D) $46.74

Question 4

The following data has been provided by Klemm 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.

Accepted Answer

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Question 5

Information about units processed and processing costs incurred during a recent month in the Refining Department of a manufacturing company follow:

Accepted Answer

A) $2.55 
B) $2.53 
C) $2.50 
D) $2.44

Question 6

Quilling 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. The cost per equivalent unit for conversion costs for the first department for the month is closest to:

Accepted Answer

A) $33.72 
B) $34.74 
C) $36.67 
D) $35.41

Question 7

Ozogoz 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. The cost per equivalent unit for materials for the month in the first processing department is closest to:

Accepted Answer

A) $18.67 
B) $20.94 
C) $19.40 
D) $17.14

Question 8

Higgins Labs Inc. ,uses a process costing system.The following data are available for one department for October:  The department started 45,000 units into production during the month and completed and transferred 50,000 units to the next department. Assuming the FIFO method is used,the equivalent units for conversion for October would be:

Accepted Answer

A) 50,500 units 
B) 50,000 units 
C) 44,500 units 
D) 48,000 units

Question 9

Muzyka 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. The cost of a completed unit transferred out of the department is closest to:

Accepted Answer

A) $69.88 
B) $75.56 
C) $60.71 
D) $65.92

Question 10

Karmen 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?

Accepted Answer

A) 85,000 
B) 85,960 
C) 93,200 
D) 80,800

Question 11

In the cost reconciliation report under the FIFO method,the costs accounted for equals the cost of ending work in process inventory plus the cost of units transferred out.

Accepted Answer

A) True 
 B)False

Question 12

In April,one of the processing departments at Salatino Corporation had beginning work in process inventory of $27,000 and ending work in process inventory of $36,000.During the month,the cost of units transferred out from the department was $261,000.The company uses the FIFO method in its process costing system. In the department's cost reconciliation report for April,the total cost accounted for would be:

Accepted Answer

A) $297,000 
B) $594,000 
C) $63,000 
D) $567,000

Question 13

Darver 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.

Accepted Answer

The answer of Darver Inc.uses the FIFO method in its...

Question 14

Garson Corporation uses the FIFO method in its process costing system.The Grinding Department started the month with 18,000 units in its beginning work in process inventory that were 10% complete with respect to conversion costs.An additional 98,000 units were transferred in from the prior department during the month to begin processing in the Grinding Department.During the month 115,000 units were completed in the Grinding Department and transferred to the next processing department.There were 1,000 units in the ending work in process inventory of the Grinding Department that were 20% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Grinding Department for the month?

Accepted Answer

A) 81,000 
B) 115,200 
C) 115,000 
D) 113,400

Question 15

The equivalent units of production will be the same under the weighted-average and the FIFO method if there is no ending work in process inventory.

Accepted Answer

A) True 
 B)False

Question 16

Nouri 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. What are the equivalent units for materials for the month in the first processing department?

Accepted Answer

A) 850 
B) 7,240 
C) 7,600 
D) 6,300

Question 17

Overhill Corporation 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:

Accepted Answer

A) $1.48 
B) $1.50 
C) $1.16 
D) $1.82

Question 18

Easy 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.

Accepted Answer

The answer of Easy Inc.uses the FIFO method in its...

Question 19

The following information was obtained from the records of the first processing department of Bapst Corporation 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. The equivalent units for materials for the month is:

Accepted Answer

A) 21,600 units 
B) 22,500 units 
C) 16,000 units 
D) 20,000 units

Question 20

Marten 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 $83,600 at the beginning of September.Additional conversion costs of $427,682 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. )

Accepted Answer

A) $5.498 
B) $5.779 
C) $5.620 
D) $5.500

Exam 5: Supplement: Process Costing Using the Fifo Method

Under the FIFO method,unit costs would:

Information about units processed and processing costs incurred during a recent month in the Refining Department of a manufacturing company follow:

Karmen 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?

In the cost reconciliation report under the FIFO method,the costs accounted for equals the cost of ending work in process inventory plus the cost of units transferred out.

The equivalent units of production will be the same under the weighted-average and the FIFO method if there is no ending work in process inventory.