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Exam 22: Fifo Method

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Question 21

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Noda 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?

A) 630
B) 6,675
C) 7,200
D) 6,000

E) C) and D)
F) All of the above

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Question 22

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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:

A) 6,700 units
B) 11,700 units
C) 10,300 units
D) 13,000 units

E) C) and D)
F) A) and B)

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Question 23

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The following information relates to the Mixing Department of Zaglav Products Company for the month of June. Zaglav uses a FIFO process costing system. -What are the Mixing Department's equivalent units related to materials for June?

Quill 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 $5,018 at the beginning of March. Additional conversion costs of $420,644 were incurred in the department during the month. What would be the cost per equivalent unit for conversion costs for March? (Round off to three decimal places.)

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.

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.

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: 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?

Rabin 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.

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. 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.

Cherrington Company uses a process costing system. For May, the month just completed, the beginning work in process inventory consisted of 50,000 units which were 60% complete with respect to conversion costs. The ending inventory for the month was 20% complete with respect to conversion costs. A summary of cost data for the month follows: -Assuming that Cherrington Company uses the weighted-average method, what is the cost per equivalent unit for conversion costs for May to the nearest whole cent?

In January, one of the processing departments at Sessum Corporation had beginning work in process inventory of $17,000. During the month, $172,000 of costs were added to production and the cost of units transferred out from the department was $178,000. The company uses the FIFO method in its process costing system. -In the department's cost reconciliation report for January, the cost of ending work in process inventory would be:

In September, one of the processing departments at Becka Corporation had ending work in process inventory of $23,000. During the month, $362,000 of costs were added to production and the cost of units transferred out from the department was $372,000. The company uses the FIFO method in its process costing system. In the department's cost reconciliation report for September, the total cost accounted for would be:

In October, one of the processing departments at Gascon Corporation had beginning work in process inventory of $10,000 and ending work in process inventory of $16,000. During the month, $100,000 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. Required: Construct a cost reconciliation report for the department for the month of October.

The following data pertain to the Milling Department of Herd Corporation for September. 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 September using the FIFO method.

Cherrington Company uses a process costing system. For May, the month just completed, the beginning work in process inventory consisted of 50,000 units which were 60% complete with respect to conversion costs. The ending inventory for the month was 20% complete with respect to conversion costs. A summary of cost data for the month follows: -Using the FIFO method, the equivalent units for May for conversion costs are:

Ozdemir 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?

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. Required: Using the FIFO method, determine the equivalent units of production for materials and conversion costs.

Details of the manufacturing activity in Amy Company's Assembly Department for the month of December are given below: 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:

The following data has been provided by Leser 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 June. Required: Determine the cost of ending work in process inventory and the cost of the units transferred out of the department during June using the FIFO method.

Freisn Corporation uses the FIFO method in its process costing system. Department A is the first processing department the company's production process. The following information pertains to conversion costs in June for that department: The equivalent units for conversion costs are: