FIFO Costing Appendix Guide

Appendix 4A, FIFO Method
LO8: FIFO assignment of costs (App 4A) LO9: FIFO Cost reconciliation (App 4A)
LO6: FIFO equivalent units (App 4A)
LO11: Step-down method (App 4B)
LO7: FIFO cost per EU (App 4A)
LO4: WAC assignment of costs
LO10: Direct method (App 4B)
LO5: WAC Cost reconciliation
Professional Exam Adapted
LO2: WAC equivalent units
LO3: WAC cost per EU
LO1: Cost flows
Difficulty
Question Type 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 T/F T/F T/F T/F T/F Conceptual M/C M/C M/C M/C M/C M/C M/C M/C M/C M/C M/C M/C M/C
ID 8/e: ATB4-10 New,5/23/97C 4/e:4-166 4/e:4-164 New, 7/11/07,D4 6/e:4-17 4/e:4-231 3/e:4-15 New,5/27/97,E6 New,5/27/97,M6 1/e:3-8 New,5/27/97,I6 New,5/27/97,Q6 4/e:4-190 New,5/25/97,C6 New,5/27/97,K6 1/e:3-4 4/e:4-222
H M E M M H H M M M M M M M M M M E
x x
x x x x x x x x x x x x x x x x x x x x x x x x x x
Origin David Keyes E.N. Authors Authors E.N. Authors Authors Authors E.N. E.N. Authors E.N. E.N. Authors E.N. E.N. Authors Authors
CMA/CPA origin
4A-1

19 20 21 22 4A1 4A2 4A3 4A4 4A5 4A6 4A7 4A8 4A9 4A10 4A11 23 2427 2835 3637 3844 4547 4849 5051 5253 5455 5657 5859 60 61 62 63 64 65 M/C M/C M/C M/C M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Multipart M/C Problem Problem Problem Problem Problem Problem M M M E M M M H M M M M M H E-M E-M M H H M M M x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x C M A x x x x x New,5/27/97,G6 New,5/27/97,O6 New,5/27/97,T6 7/12/2007 Single MC L1 7/12/2007 Sngle MC M1 4/e:4-192 to 195 CMA,6/95,Part3, Q1-Q7 LD9e:CH04Q3-5 New 11/18/00 M4 New 11/18/00 P4 New 11/18/00 Q4 New 11/18/00 N4 New 11/18/00 O4 8/e:ATB4-47 to 48 7/12/2007 Multi MC K1 7/12/2007 Multi MC L1 3/e:4-P4-1 New,5/28/97,D6 New,5/28/97,E6 8/8/2004 Problem G3 8/8/2004 Problem H3 New,5/28/97,F6 E.N. E.N. E.N. E.N. E.N. Authors Authors Larry Deppe E.N. E.N. E.N. E.N. E.N. David Keyes E.N. E.N. Authors E.N. E.N. E.N. E.N. E.N. CMA,6/95,P art3,Q1-Q7
4A-2

66 67 68 69 70 71 72 73 74 Problem Problem Problem Problem Problem Problem Problem Problem Problem M M E E M M E M M x x x x x x x x x 8/8/2004 Problem C3 8/8/2004 Problem D3 8/8/2004 Problem K3 8/8/2004 Problem L3 8/8/2004 Problem P3 8/8/2004 Problem Q3 7/12/2007 Problem U1 7/12/2007 Problem V1 7/12/2007 Problem W1 E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N. E.N.
4A-3

True / False Questions 1. 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. True False
2. The cost per equivalent unit for conversion costs will always be the same under both the FIFO and the weighted-average methods if there is no beginning work in process inventory. True False
3. Under the FIFO process costing method, the equivalent units of production relate only to work done during the current period. True False
4. 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. True False
5. 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. True False
4A-4

Multiple Choice Questions 6. 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: A. the same as that computed under the weighted-average method. B. higher than that computed under the weighted-average method. C. lower than that computed under the weighted-average method. D. could be lower than, the same as, or higher than that computed under the weighted-average method.
7. On April 1, Histron Corporation had 10,000 units of work in process in Department A that were 100% complete with respect to material costs and 20% complete with respect to conversion costs. During April, 80,000 units were started in Department A and 85,000 units were completed and transferred to Department B. The work in process at the end of April was 100% complete with respect to materials costs and 40% complete with respect to conversion costs. By what amount would the equivalent units for conversion costs for April differ if the FIFO method were used instead of the weighted-average method? A. 10,000 decrease B. 8,000 decrease C. 4,000 decrease D. 2,000 decrease
8. Creer Company uses the FIFO method in its process costing system. Department A had 20,000 units in process at the beginning of January, that were 40% complete with respect to conversion costs. All materials are added at the beginning of the process in Department A. The January 1 work in process inventory in Department A contained $10,000 in materials cost and $11,600 in conversion cost. During January, materials costs were $0.50 per equivalent unit and conversion costs were $1.50 per equivalent unit. All of the units in the beginning work in process inventory were completed and transferred out during the month. What was the total cost attached to these units when they were transferred to the next department? A. $39,600 B. $33,600 C. $45,600 D. $37,600
4A-5

9. 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.) A. $2.880 B. $3.200 C. $2.950 D. $3.050
10. Malaviya 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 $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.) A. $8.060 B. $9.280 C. $9.087 D. $9.400
4A-6

11. 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: A. $3,500 B. $3,900 C. $5,900 D. $8,000
12. Ismail Corporation uses the FIFO method in its process costing system. The first processing department, the Forming Department, started the month with 21,000 units in its beginning work in process inventory that were 10% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $6,090. An additional 98,000 units were started into production during the month and 95,000 units were completed and transferred to the next processing department. There were 24,000 units in the ending work in process inventory of the Forming Department that were 30% complete with respect to conversion costs. A total of $269,269 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? (Round off to three decimal places.) A. $2.900 B. $2.748 C. $2.690 D. $2.314
4A-7

13. 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.) A. $8.413 B. $7.586 C. $7.534 D. $7.720
4A-8

14. 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:
The cost of the 75,000 units transferred out of the department during June is: A. $151,250 B. $145,250 C. $131,500 D. $168,750
15. Capul 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 50% complete with respect to conversion costs. An additional 74,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 15,000 units in the ending work in process inventory of the Assembly Department that were 60% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month? A. 84,000 B. 70,500 C. 73,000 D. 64,000
4A-9

16. Kets 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. 83,190 B. 80,600 C. 83,800 D. 84,400
17. 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
4A-10

18. 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: A. 160,000 B. 168,000 C. 180,000 D. 176,000
19. Galli 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 30% complete with respect to conversion costs. An additional 73,000 units were transferred in from the prior department during the month to begin processing in the Grinding Department. During the month 66,000 units were completed in the Grinding Department and transferred to the next processing department. There were 17,000 units in the ending work in process inventory of the Grinding Department that were 40% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Grinding Department for the month? A. 69,800 B. 80,000 C. 72,800 D. 66,000
4A-11

20. 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? A. 57,500 B. 56,680 C. 56,100 D. 59,020
4A-12

21. Tenicheff 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 $10,250 at the beginning of March. The cost per equivalent unit for conversion costs for March was $2.40. How much conversion cost would be assigned to the units completed and transferred out of the department during March? A. $134,880 B. $117,600 C. $135,290 D. $125,040
22. 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: A. $580,000 B. $557,000 C. $290,000 D. $55,000
4A-13

23. 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: A. $56,000 B. $395,000 C. $790,000 D. $757,000
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.
24. The equivalent units for labor and overhead for the month, using the FIFO method, is: A. 90,000 B. 70,000 C. 80,000 D. 74,000
25. The equivalent units for material for the month, using the FIFO method, is: A. 80,000 B. 70,000 C. 74,000 D. 90,000
4A-14

26. The equivalent units for labor and overhead for the month, using the weighted-average method, is: A. 162,000 B. 80,000 C. 81,000 D. 74,000
27. The equivalent units for material for the month, using the weighted-average method, is: A. 81,000 B. 90,000 C. 70,000 D. 80,000
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:
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:
28. Using the FIFO method, the equivalent units for May for materials are: A. 82,400 units B. 104,000 units C. 107,200 units D. 108,000 units
4A-15

29. Using the FIFO method, the equivalent units for May for conversion costs are: A. 85,600 units B. 88,800 units C. 95,200 units D. 98,400 units
30. Using the FIFO method, the cost per equivalent unit of materials for May is closest to: A. $4.12 B. $4.50 C. $4.60 D. $4.80
31. Using the FIFO method, the cost per equivalent unit of conversion cost for May is closest to: A. $5.65 B. $5.83 C. $6.00 D. $6.20
32. Using the FIFO method, the total cost of units in the ending work in process inventory is closest to: A. $153,200 B. $154,800 C. $155,300 D. $157,000
4A-16

33. Using the weighted-average method, the cost per equivalent unit of materials for May is closest to: A. $4.12 B. $4.50 C. $4.60 D. $5.03
34. Using the weighted-average method, the cost per equivalent unit of conversion cost for May is closest to: A. $5.65 B. $5.83 C. $6.00 D. $6.41
35. Using the weighted-average method, the total cost of the units in ending work in process inventory is closest to: A. $156,960 B. $86,400 C. $153,960 D. $154,800
4A-17

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:
36. 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? A. $4.19 B. $4.00 C. $3.64 D. $3.83
37. Assuming that Cherrington Company uses the FIFO method, what is the cost per equivalent unit for conversion costs for May to the nearest cent? A. $4.31 B. $3.49 C. $4.29 D. $4.11
4A-18

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.
38. What are the equivalent units for materials for the month in the first processing department? A. 1,040 B. 9,385 C. 10,400 D. 8,100
39. What are the equivalent units for conversion costs for the month in the first processing department? A. 880 B. 10,400 C. 9,575 D. 8,100
4A-19

40. The cost per equivalent unit for materials for the month in the first processing department is closest to: A. $23.28 B. $21.83 C. $23.96 D. $19.70
41. The cost per equivalent unit for conversion costs for the first department for the month is closest to: A. $37.87 B. $39.76 C. $43.81 D. $41.20
42. The cost of a completed unit transferred out of the department is closest to: A. $63.28 B. $59.70 C. $56.06 D. $71.98
43. The total cost transferred from the first processing department to the next processing department during the month is closest to: A. $526,967 B. $583,000 C. $620,901 D. $567,500
44. The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: A. $95,523 B. $56,031 C. $52,538 D. $62,090
4A-20

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:
45. What are the equivalent units for materials for the month in the first processing department? A. 10,300 B. 550 C. 9,570 D. 8,900
4A-21

Qtech Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below:
48. How many units were started AND completed during the month in the first processing department? A. 8,900 B. 9,500 C. 8,100 D. 7,500
4A-22

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:
50. 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
4A-23

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:
52. What are the equivalent units for conversion costs for the month in the first processing department? A. 8,100 B. 560 C. 8,835 D. 10,000
4A-24

The following information relates to the Mixing Department of Zaglav Products Company for the month of June. Zaglav uses a FIFO process costing system.
54. What are the Mixing Department's equivalent units related to materials for June? A. 76,000 B. 79,000 C. 87,000 D. 84,000
55. What are the Mixing Department's equivalent units related to conversion costs for June? A. 78,300 B. 81,300 C. 82,300 D. 84,700
4A-25

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.
56. In the department's cost reconciliation report for July, the costs added to production in the department would be: A. $217,000 B. $198,000 C. $197,000 D. $215,000
57. In the department's cost reconciliation report for July, the total cost accounted for would be: A. $37,000 B. $449,000 C. $234,000 D. $468,000
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.
58. In the department's cost reconciliation report for January, the cost of ending work in process inventory would be: A. $17,000 B. $5,000 C. $11,000 D. $23,000
4A-26

59. In the department's cost reconciliation report for January, the total cost to be accounted for would be: A. $361,000 B. $189,000 C. $28,000 D. $378,000
Essay Questions 60. Sharp Company has a process costing system. The following data relate to the company's Mixing Department for a recent month:
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.
4A-27

61. 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.
4A-28

62. Epstein 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.
4A-29

63. Auguste Corporation uses the FIFO method in its process costing. The following data pertain to its Assembly Department for October.
Required: Compute the equivalent units of production for both materials and conversion costs for the Assembly Department for October using the FIFO method.
4A-30

64. 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.
4A-31

65. 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.
4A-32

66. Lasswell Corporation uses the FIFO method in its process costing. The following data pertain to its Assembly Department for May.
Required: Determine the equivalent units of production for the Assembly Department for May using the FIFO method.
4A-33

67. The following data have been provided by Leon Corporation for the Circuit Prep Department. The company uses the FIFO method in its process costing.
Required: Determine the equivalent units of production for the Circuit Prep Department for December using the FIFO method.
4A-34

68. Ahler Corporation uses the FIFO method in its process costing. The following data concern the company's Assembly Department for the month of October.
Required: Compute the costs per equivalent unit for the Assembly Department for October using the FIFO method.
69. 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.
4A-35

70. Bufford Corporation uses the FIFO method in its process costing system. The following data concern the company's Assembly Department for the month of September.
Required: Determine the cost of ending work in process inventory and the cost of units transferred out of the department during September using the FIFO method.
4A-36

71. 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.
72. 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.
4A-37

73. 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.
74. In August, one of the processing departments at Marchese Corporation had beginning work in process inventory of $34,000 and ending work in process inventory of $35,000. During the month, $401,000 of costs were added to production. The company uses the FIFO method in its process costing system. Required: Construct a cost reconciliation report for the department for the month of August.
4A-38
Appendix 4A, FIFO Method Key
True / False Questions 1. 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. TRUE
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 2 Learning Objective: 6 Level: Hard
2. The cost per equivalent unit for conversion costs will always be the same under both the FIFO and the weighted-average methods if there is no beginning work in process inventory. TRUE
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 3 Learning Objective: 7 Level: Medium
3. Under the FIFO process costing method, the equivalent units of production relate only to work done during the current period. TRUE
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 6 Level: Easy
4A-39
4. 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. FALSE
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 7 Level: Medium
5. 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. FALSE
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 9 Level: Medium
Multiple Choice Questions 6. 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: A. the same as that computed under the weighted-average method. B. higher than that computed under the weighted-average method. C. lower than that computed under the weighted-average method. D. could be lower than, the same as, or higher than that computed under the weighted-average method.
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 3 Learning Objective: 7 Level: Hard
4A-40
7. On April 1, Histron Corporation had 10,000 units of work in process in Department A that were 100% complete with respect to material costs and 20% complete with respect to conversion costs. During April, 80,000 units were started in Department A and 85,000 units were completed and transferred to Department B. The work in process at the end of April was 100% complete with respect to materials costs and 40% complete with respect to conversion costs. By what amount would the equivalent units for conversion costs for April differ if the FIFO method were used instead of the weighted-average method? A. 10,000 decrease B. 8,000 decrease C. 4,000 decrease D. 2,000 decrease
Difference = 87,000 equivalent units using Weighted Average - 85,000 equivalent units using FIFO = 2,000 equivalent unit decrease
4A-41

AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 2 Learning Objective: 6 Level: Hard
8. Creer Company uses the FIFO method in its process costing system. Department A had 20,000 units in process at the beginning of January, that were 40% complete with respect to conversion costs. All materials are added at the beginning of the process in Department A. The January 1 work in process inventory in Department A contained $10,000 in materials cost and $11,600 in conversion cost. During January, materials costs were $0.50 per equivalent unit and conversion costs were $1.50 per equivalent unit. All of the units in the beginning work in process inventory were completed and transferred out during the month. What was the total cost attached to these units when they were transferred to the next department? A. $39,600 B. $33,600 C. $45,600 D. $37,600
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 6 Learning Objective: 7 Learning Objective: 8 Level: Medium
4A-42
9. 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.) A. $2.880 B. $3.200 C. $2.950 D. $3.050
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 6 Learning Objective: 7 Level: Medium
4A-43
10. Malaviya 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 $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.) A. $8.060 B. $9.280 C. $9.087 D. $9.400
4A-44
11. 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: A. $3,500 B. $3,900 C. $5,900 D. $8,000
AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 6 Learning Objective: 7 Level: Medium
4A-45
12. Ismail Corporation uses the FIFO method in its process costing system. The first processing department, the Forming Department, started the month with 21,000 units in its beginning work in process inventory that were 10% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $6,090. An additional 98,000 units were started into production during the month and 95,000 units were completed and transferred to the next processing department. There were 24,000 units in the ending work in process inventory of the Forming Department that were 30% complete with respect to conversion costs. A total of $269,269 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? (Round off to three decimal places.) A. $2.900 B. $2.748 C. $2.690 D. $2.314
4A-46
13. 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.) A. $8.413 B. $7.586 C. $7.534 D. $7.720
4A-47
14. 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:
The cost of the 75,000 units transferred out of the department during June is: A. $151,250 B. $145,250 C. $131,500 D. $168,750
4A-48

15. Capul 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 50% complete with respect to conversion costs. An additional 74,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 15,000 units in the ending work in process inventory of the Assembly Department that were 60% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month? A. 84,000 B. 70,500 C. 73,000 D. 64,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 6 Level: Medium
4A-49
16. Kets 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. 83,190 B. 80,600 C. 83,800 D. 84,400
4A-50
17. 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
4A-51
18. 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: A. 160,000 B. 168,000 C. 180,000 D. 176,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 6 Level: Easy
4A-52
19. Galli 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 30% complete with respect to conversion costs. An additional 73,000 units were transferred in from the prior department during the month to begin processing in the Grinding Department. During the month 66,000 units were completed in the Grinding Department and transferred to the next processing department. There were 17,000 units in the ending work in process inventory of the Grinding Department that were 40% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Grinding Department for the month? A. 69,800 B. 80,000 C. 72,800 D. 66,000
4A-53
20. 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? A. 57,500 B. 56,680 C. 56,100 D. 59,020
4A-54
21. Tenicheff 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 $10,250 at the beginning of March. The cost per equivalent unit for conversion costs for March was $2.40. How much conversion cost would be assigned to the units completed and transferred out of the department during March? A. $134,880 B. $117,600 C. $135,290 D. $125,040
4A-55
4A-56
22. 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: A. $580,000 B. $557,000 C. $290,000 D. $55,000 Total cost to be accounted for:
23. 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: A. $56,000 B. $395,000 C. $790,000 D. $757,000
4A-57
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.
24. The equivalent units for labor and overhead for the month, using the FIFO method, is: A. 90,000 B. 70,000 C. 80,000 D. 74,000
4A-58
25. The equivalent units for material for the month, using the FIFO method, is: A. 80,000 B. 70,000 C. 74,000 D. 90,000
26. The equivalent units for labor and overhead for the month, using the weighted-average method, is: A. 162,000 B. 80,000 C. 81,000 D. 74,000
4A-59
27. The equivalent units for material for the month, using the weighted-average method, is: A. 81,000 B. 90,000 C. 70,000 D. 80,000
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:
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:
4A-60

28. Using the FIFO method, the equivalent units for May for materials are: A. 82,400 units B. 104,000 units C. 107,200 units D. 108,000 units
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 6 Level: Medium Source: CMA, adapted
4A-61
29. Using the FIFO method, the equivalent units for May for conversion costs are: A. 85,600 units B. 88,800 units C. 95,200 units D. 98,400 units
4A-62
30. Using the FIFO method, the cost per equivalent unit of materials for May is closest to: A. $4.12 B. $4.50 C. $4.60 D. $4.80
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 6 Learning Objective: 7 Level: Medium Source: CMA, adapted
4A-63
31. Using the FIFO method, the cost per equivalent unit of conversion cost for May is closest to: A. $5.65 B. $5.83 C. $6.00 D. $6.20
4A-64
32. Using the FIFO method, the total cost of units in the ending work in process inventory is closest to: A. $153,200 B. $154,800 C. $155,300 D. $157,000
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 6 Learning Objective: 7 Learning Objective: 8 Level: Medium Source: CMA, adapted
4A-65
33. Using the weighted-average method, the cost per equivalent unit of materials for May is closest to: A. $4.12 B. $4.50 C. $4.60 D. $5.03
4A-66
34. Using the weighted-average method, the cost per equivalent unit of conversion cost for May is closest to: A. $5.65 B. $5.83 C. $6.00 D. $6.41
4A-67
35. Using the weighted-average method, the total cost of the units in ending work in process inventory is closest to: A. $156,960 B. $86,400 C. $153,960 D. $154,800
4A-68
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:
36. 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? A. $4.19 B. $4.00 C. $3.64 D. $3.83
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 3 Level: Hard
4A-69
37. Assuming that Cherrington Company uses the FIFO method, what is the cost per equivalent unit for conversion costs for May to the nearest cent? A. $4.31 B. $3.49 C. $4.29 D. $4.11
4A-70
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:
4A-71

38. What are the equivalent units for materials for the month in the first processing department? A. 1,040 B. 9,385 C. 10,400 D. 8,100
4A-72
39. What are the equivalent units for conversion costs for the month in the first processing department? A. 880 B. 10,400 C. 9,575 D. 8,100
4A-73
4A-74
4A-75
42. The cost of a completed unit transferred out of the department is closest to: A. $63.28 B. $59.70 C. $56.06 D. $71.98
4A-76
4A-77
4A-78
44. The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: A. $95,523 B. $56,031 C. $52,538 D. $62,090
4A-79
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:
4A-80

45. What are the equivalent units for materials for the month in the first processing department? A. 10,300 B. 550 C. 9,570 D. 8,900
4A-81
4A-82
4A-83
4A-84
Qtech Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below:
48. How many units were started AND completed during the month in the first processing department? A. 8,900 B. 9,500 C. 8,100 D. 7,500
4A-85
4A-86
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:
4A-87

50. 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
4A-88
4A-89
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:
4A-90

52. What are the equivalent units for conversion costs for the month in the first processing department? A. 8,100 B. 560 C. 8,835 D. 10,000
4A-91
4A-92
The following information relates to the Mixing Department of Zaglav Products Company for the month of June. Zaglav uses a FIFO process costing system.
54. What are the Mixing Department's equivalent units related to materials for June? A. 76,000 B. 79,000 C. 87,000 D. 84,000
4A-93
55. What are the Mixing Department's equivalent units related to conversion costs for June? A. 78,300 B. 81,300 C. 82,300 D. 84,700
4A-94
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.
56. In the department's cost reconciliation report for July, the costs added to production in the department would be: A. $217,000 B. $198,000 C. $197,000 D. $215,000
4A-95
57. In the department's cost reconciliation report for July, the total cost accounted for would be: A. $37,000 B. $449,000 C. $234,000 D. $468,000
4A-96
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.
58. In the department's cost reconciliation report for January, the cost of ending work in process inventory would be: A. $17,000 B. $5,000 C. $11,000 D. $23,000
4A-97
59. In the department's cost reconciliation report for January, the total cost to be accounted for would be: A. $361,000 B. $189,000 C. $28,000 D. $378,000
4A-98
Essay Questions 60. Sharp Company has a process costing system. The following data relate to the company's Mixing Department for a recent month:
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.
4A-99
61. 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.
4A-100

FIFO method:
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 6 Learning Objective: 7 Learning Objective: 8 Level: Hard
4A-101
62. Epstein 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.
4A-102

FIFO method:
AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Measurement Learning Objective: 6 Learning Objective: 7 Learning Objective: 8 Level: Hard
4A-103
63. Auguste Corporation uses the FIFO method in its process costing. The following data pertain to its Assembly Department for October.
Required: Compute the equivalent units of production for both materials and conversion costs for the Assembly Department for October using the FIFO method. FIFO method:
4A-104
64. 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. FIFO method:
4A-105
65. 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. FIFO method:
4A-106
66. Lasswell Corporation uses the FIFO method in its process costing. The following data pertain to its Assembly Department for May.
Required: Determine the equivalent units of production for the Assembly Department for May using the FIFO method. FIFO method:
4A-107
67. The following data have been provided by Leon Corporation for the Circuit Prep Department. The company uses the FIFO method in its process costing.
Required: Determine the equivalent units of production for the Circuit Prep Department for December using the FIFO method. FIFO method:
4A-108
68. Ahler Corporation uses the FIFO method in its process costing. The following data concern the company's Assembly Department for the month of October.
Required: Compute the costs per equivalent unit for the Assembly Department for October using the FIFO method. FIFO method:
4A-109
69. 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. FIFO method:
4A-110
70. Bufford Corporation uses the FIFO method in its process costing system. The following data concern the company's Assembly Department for the month of September.
Required: Determine the cost of ending work in process inventory and the cost of units transferred out of the department during September using the FIFO method. FIFO method:
4A-111
71. 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. FIFO method:
4A-112
72. 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.
4A-113
73. 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.
4A-114
74. In August, one of the processing departments at Marchese Corporation had beginning work in process inventory of $34,000 and ending work in process inventory of $35,000. During the month, $401,000 of costs were added to production. The company uses the FIFO method in its process costing system. Required: Construct a cost reconciliation report for the department for the month of August.
4A-115

FIFO Costing Appendix Guide

Caricato da

Informazioni sul documento

Descrizione originale:

Titolo originale

Copyright

Formati disponibili

Condividi questo documento

Condividi o incorpora il documento

Opzioni di condivisione

Hai trovato utile questo documento?

Questo contenuto è inappropriato?

Copyright:

Formati disponibili

FIFO Costing Appendix Guide

Caricato da

Copyright:

Formati disponibili

Appendix 4A, FIFO Method

LO6: FIFO equivalent units (App 4A)

LO11: Step-down method (App 4B)

LO7: FIFO cost per EU (App 4A)

LO4: WAC assignment of costs

LO10: Direct method (App 4B)

LO5: WAC Cost reconciliation

Professional Exam Adapted

LO2: WAC equivalent units

LO3: WAC cost per EU

LO1: Cost flows

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key