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Exam 16: Process Costing6 Cost-Volume-Profit Relationships

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Question 21

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Carver Corporation uses the FIFO method in its process costing system.The Assembly Department started the month with 2,000 units in its beginning work in process inventory that were 60% complete with respect to conversion costs.An additional 66,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department.There were 9,000 units in the ending work in process inventory of the Assembly Department that were 50% complete with respect to conversion costs. What were the equivalent units of production for conversion costs in the Assembly Department for the month?

A) 59,000
B) 62,300
C) 63,500
D) 73,000

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

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Question 22

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Using the weighted-average method, the equivalent units for materials for March would be:

A) 65,000
B) 67,000
C) 68,050
D) 70,000

E) A) and B)
F) None of the above

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Question 23

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What total amount of cost should be assigned to the units in work in process on February 28?

Marston Corporation uses the FIFO method in its process costing system.The equivalent units of production for March for conversion costs totaled 37,500 units.The beginning work in process inventory in March consisted of 15,000 units, 60% complete with respect to conversion costs.The ending work in process inventory in March consisted of 10,000 units, 75% complete with respect to conversion costs.The number of units started during the month was:

In the department's cost reconciliation report for February, the total cost accounted for would be:

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

How many units were in the beginning work in process inventory?

In the department's cost reconciliation report for February, the costs added to production in the department would be:

The following data pertain to the Milling Department of Malmberg Corporation for July.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 July using the FIFO method.

The equivalent units for labor and overhead for the month, using the FIFO method, is:

Using the FIFO method, the equivalent units for conversion for March would be:

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

Any difference in the equivalent units calculated under the weighted-average and the FIFO methods is due to the units in the ending work in process inventory.

Assuming that Owens Corporation uses the FIFO method, which of the following is closest to the cost per equivalent unit for processing cost for March?

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

Rauzman 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.

In February, one of the processing departments at Encinias Corporation had beginning work in process inventory of $27,000 and ending work in process inventory of $21,000.During the month, $316,000 of costs were added to production and the cost of units transferred out from the department was $322,000.The company uses the FIFO method in its process costing system. Required: Construct a cost reconciliation report for the department for the month of February.

Krumbly Corporation uses the FIFO method in its process costing system.At the beginning of the month, Department D's work in process inventory contained 2,000 units.These units were 100% complete with respect to materials and 40% complete with respect to conversion costs, with a total cost at that point of $13,600.During the month, conversion costs amounted to $8 per equivalent unit.If all 2,000 units are fully complete by the end of the month and transferred out of the department, the total cost of the 2,000 units transferred out will be closest to:

The equivalent units for conversion for March, using the FIFO method, are:

From the standpoint of cost control, the FIFO method of process costing is superior to the weighted-average method.