Deck 8: Fifo Method

Question 1

Salter Corporation uses the FIFO method in its process costing system. The company reported 25,000 equivalent units for materials last month. The company's beginning work in process inventory consisted of 6,000 units, 40% complete with respect to materials. The ending work in process inventory consisted of 4,000 units, 70% complete with respect to materials. The number of units started during the month was:

A)25,400 units
B)23,400 units
C)22,600 units
D)24,600 units

Answer 1

C

Question 2

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

Answer 2

False

Question 3

Under which of the following conditions will the FIFO method of process costing result in the same amount of cost being transferred to the next department as the weighted-average method?

A)When the beginning and ending inventories are each fifty percent complete.
B)When there is no beginning inventory.
C)When there is no ending inventory.
D)When units in the beginning inventory are all completed and transferred at the same time.

Answer 3

B

Question 4

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.

Question 5

Winkle Corporation uses the FIFO method in its process costing system. Beginning inventory in the mixing processing center consisted of 5,000 units, 90% complete with respect to conversion costs. Ending work in process inventory consisted of 2,000 units, 60% complete with respect to conversion costs. If 10,000 units were transferred to the next processing center during the period, the equivalent units for conversion costs would be:

A)13,200 units
B)6,700 units
C)10,000 units
D)12,000 units

Question 6

Carson Corporation uses the FIFO method in its process costing system. The Assembly Department started the month with 6,000 units in its beginning work in process inventory that were 20% 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 8,000 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)72,000
B)75,600
C)76,000
D)76,800

Question 7

The equivalent units of production for a department using the FIFO process costing method is equal to the number of units completed plus the equivalent units in the ending inventory less the equivalent units in the beginning inventory.

Question 8

Oxyrom Corporation 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)49,040
B)50,200
C)43,200
D)48,280

Question 9

In computing the cost per equivalent unit, costs in the beginning work in process inventory are kept separate from current period costs when the FIFO method is used.

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?

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 to be accounted for equals the cost of ending work in process inventory plus the cost of units transferred out.

Question 12

There is no difference in the unit costs computed under the weighted-average and FIFO methods of process costing if there are no ending work in process inventories.

Question 13

Under the FIFO method, unit costs would:

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 14

If the FIFO cost method is used in a process costing system, costs in the beginning inventory are kept separate from current period costs.

Question 15

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

Question 16

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.

Question 17

A major advantage of the FIFO method is that it allows managers to judge the performance of the current period independently of the performance of the prior period.

Question 18

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?

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

Question 19

Laurie Corporation uses the FIFO method in its process costing system. Department A is the first stage of Laurie Corporation's production process. The following information is available for conversion costs for the month of May for Department A: The equivalent units of production for conversion costs for the month are:

A)42,000 units
B)38,000 units
C)44,000 units
D)36,000 units

Question 20

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

Question 21

Steven Corporation uses the FIFO method in its process costing system. Department A's beginning work in process inventory consisted of 15,000 units, 100% complete with respect to materials and 40% complete with respect to conversion costs. The total cost of this inventory was $31,000. A total of 40,000 units were transferred out during the month. The costs per equivalent unit were computed to be $1.30 for materials and $2.20 for conversion costs. The cost of the units completed and transferred out was:

A)$140,000
B)$138,300
C)$131,700
D)$118,500

Question 22

Tarten 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 $7,470 at the beginning of March. The cost per equivalent unit for conversion costs for March was $8.20. How much conversion cost would be assigned to the units completed and transferred out of the department during March?

A)$525,530
B)$592,040
C)$533,090
D)$533,000

Question 23

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:

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

Question 24

In October, one of the processing departments at Ridling Corporation had ending work in process inventory of $39,000. During the month, $252,000 of costs were added to production and the cost of units transferred out from the department was $235,000. The company uses the FIFO method in its process costing system. In the department's cost reconciliation report for October, the total cost to be accounted for would be:

A)$526,000
B)$61,000
C)$548,000
D)$274,000

Question 25

Williams Corporation uses the FIFO method in its process costing system. The beginning work in process inventory in a particular department consisted of 10,000 units, 100% complete with respect to materials and 60% with respect to conversion costs. The total cost in the beginning work in process inventory was $48,200. During the month, 25,000 units were transferred out of the department. The costs per equivalent unit were computed to be $3.10 for materials and $4.50 for conversion costs. The total cost of the units completed and transferred out of the department was:

A)$190,000
B)$189,200
C)$180,200
D)$132,000

Question 26

In November, one of the processing departments at Goodsell Corporation had beginning work in process inventory of $36,000 and ending work in process inventory of $35,000. During the month, $427,000 of costs were added to production and the cost of units transferred out from the department was $428,000. 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)$890,000
B)$71,000
C)$463,000
D)$926,000

Question 27

Assuming Tru-Color Paint Corporation uses the FIFO method, the equivalent units for conversion costs would be:

A)42,600
B)44,400
C)46,000
D)54,000

Question 28

Qart 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 $1,656 at the beginning of March. Additional conversion costs of $129,960 were incurred in the department during the month. The cost per equivalent unit for conversion costs for March is closest to:

A)$1.710
B)$1.677
C)$1.756
D)$1.840

Question 29

Index Corporation uses the FIFO method in its process costing system. The first processing department, the Forming Department, started the month with 17,000 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 $9,010. An additional 76,000 units were started into production during the month and 83,000 units were completed and transferred to the next processing department. There were 10,000 units in the ending work in process inventory of the Forming Department that were 70% complete with respect to conversion costs. A total of $445,915 in conversion costs were incurred in the department during the month. The cost per equivalent unit for conversion costs for the month is closest to:

A)$5.050
B)$5.300
C)$5.867
D)$5.150

Question 30

Assuming the weighted-average method is used, the equivalent units for material for October would be:

A)54,000 units
B)50,000 units
C)48,000 units
D)44,000 units

Question 31

Assuming that the company uses the weighted-average cost method, what is the cost per equivalent unit for conversion costs for the month in the Blending Department to the nearest cent?

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

Question 32

Assuming that Tru-Color Paint Corporation uses the weighted-average method, the equivalent units for conversion costs would be:

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

Question 33

Assuming the weighted-average method is used, the equivalent units for conversion for October would be:

A)55,000 units
B)50,000 units
C)53,500 units
D)56,500 units

Question 34

Assuming that the company uses the weighted-average cost method, what are the equivalent units for conversion costs for the Blending Department for the month?

A)119,100
B)120,000
C)114,000
D)131,000

Question 35

Assuming that the company uses the FIFO method, what is the cost per equivalent unit for conversion costs for the month in the Blending Department to the nearest cent?

A)$2.52
B)$2.55
C)$2.44
D)$2.59

Question 36

Ebis Corporation uses the FIFO method in its process costing system. The first processing department, the Welding Department, started the month with 13,000 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 $12,610. An additional 89,000 units were started into production during the month. There were 22,000 units in the ending work in process inventory of the Welding Department that were 30% complete with respect to conversion costs. A total of $806,085 in conversion costs were incurred in the department during the month. The cost per equivalent unit for conversion costs is closest to:

A)$8.026
B)$9.700
C)$9.057
D)$9.450

Question 37

Assuming that the company uses the FIFO method, what are the equivalent units for conversion costs for the Blending Department for the month?

A)119,100
B)111,950
C)115,250
D)114,000

Question 38

Assuming that Tru-Color Paint Corporation uses the weighted-average method, the equivalent units for materials would be:

A)48,000
B)46,000
C)54,000
D)45,000

Question 39

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.)

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

Question 40

Assuming that Tru-Color Paint Corporation uses the FIFO method, the equivalent units for materials would be:

A)42,600
B)45,000
C)53,000
D)46,000

Question 41

The equivalent units (with respect to the Molding Department's costs) transferred from the Molding Department to the Assembly during the month were:

A)30,000 units
B)38,000 units
C)40,800 units
D)42,000 units

Question 42

Assuming that the company uses the FIFO cost method, the cost per equivalent unit for conversion costs for June is closest to:

A)$1.80
B)$1.40
C)$1.64
D)$1.35

Question 43

The equivalent units for materials for the month is:

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

Question 44

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

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

Question 45

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

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

Question 46

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

A)4,500
B)5,600
C)400
D)4,945

Question 47

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

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

Question 48

The equivalent units for conversion costs for the Assembly Department during the month were:

A)36,800 units
B)38,000 units
C)40,800 units
D)42,800 units

Question 49

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

A)$14.48
B)$14.82
C)$15.20
D)$15.56

Question 50

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

A)9,250
B)10,300
C)300
D)8,600

Question 51

Assuming the FIFO method is used, the equivalent units for conversion for October would be:

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

Question 52

How many units were started AND completed during the month in the first processing department?

A)7,300
B)8,700
C)8,100
D)6,700

Question 53

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

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

Question 54

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

A)$23.14
B)$18.91
C)$21.42
D)$22.06

Question 55

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

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

Question 56

Assuming the FIFO method is used, the equivalent units for material for October would be:

A)55,000 units
B)46,500 units
C)44,500 units
D)48,000 units

Question 57

The equivalent units for materials for the Assembly Department during the month were:

A)30,000 units
B)38,000 units
C)40,800 units
D)42,000 units

Question 58

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

A)5,600
B)5,060
C)4,500
D)320

Question 59

The equivalent units for labor and overhead for the month is:

A)17,600 units
B)18,500 units
C)19,700 units
D)21,600 units

Question 60

Assuming that the company uses the weighted-average method, the cost per equivalent unit for conversion costs for June is closest to:

A)$1.64
B)$1.56
C)$1.74
D)$1.48

Question 61

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

Question 62

Voyer Corporation uses the FIFO method in its process costing. The following data pertain to its Assembly Department for August. Required:
Compute the equivalent units of production for both materials and conversion costs for the Assembly Department for August using the FIFO method.

Question 63

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

A)$43.65
B)$41.57
C)$42.67
D)$43.33

Question 64

The total cost transferred from the first processing department to the next processing department during the month is closest to:

A)$505,800
B)$510,700
C)$541,932
D)$492,434

Question 65

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 and conversion using the weighted-average method.
b. Compute the equivalent units of production for materials and conversion using the FIFO method.

Question 66

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

A)$270,000
B)$225,000
C)$252,000
D)$234,000

Question 67

The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to:

A)$26,369
B)$22,808
C)$52,738
D)$21,095

Question 68

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.

Question 69

Toefield Corporation uses the FIFO method in its process costing. The following data pertain to its Assembly Department for June. Required:
Determine the equivalent units of production for the Assembly Department for June using the FIFO method.

Question 70

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.

Question 71

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

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

Question 72

The following data have been provided by Felux 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 August using the FIFO method.

Question 73

The total cost transferred from the first processing department to the next processing department during the month is closest to:

A)$369,163
B)$317,192
C)$331,100
D)$340,000

Question 74

In February, one of the processing departments at Mateus Corporation had beginning work in process inventory of $20,000 and ending work in process inventory of $30,000. During the month, $206,000 of costs were added to production and the cost of units transferred out from the department was $196,000. 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.

Question 75

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.

Question 76

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

A)400
B)8,700
C)8,140
D)7,700

Question 77

The following data pertain to the Milling Department of Vario 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.

Question 78

Rauls Corporation uses the FIFO method in its process costing. The following data concern the company's Assembly Department for the month of January. Required:
Compute the costs per equivalent unit for the Assembly Department for January using the FIFO method.

Question 79

Hayek 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.

Question 80

Farwest 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.