30) Que Corporation uses the FIFO method in its process costing system. Operating data for the
Cutting Department for the month of March appear below:
Units
Percent Complete
with Respect to
Conversion
Beginning work in process inventory
9,700
10
%
Transferred in from the prior department during March
49,000
Completed and transferred to the next department during
March
57,700
Ending work in process inventory
1,000
30
%
According to the company’s records, the conversion cost in beginning work in process inventory
was $3,705 at the beginning of March. Additional conversion costs of $210,213 were incurred in
the department during the month.
The cost per equivalent unit for conversion costs for March is closest to:
A) $3.686
B) $1.677
C) $1.756
D) $1.840
31) Overboard 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:
Units
Conversion
Cost
Beginning work in process inventory
20,000
$
29,000
Units started into production, and costs incurred during the
month
150,000
$
217,000
Units completed and transferred out
130,000
The cost per equivalent unit for conversion cost is closest to:
A) $1.75
B) $1.51
C) $1.45
D) $1.98
32) Eban Corporation uses the FIFO method in its process costing system. The first processing
department, the Welding Department, started the month with 18,000 units in its beginning work in
process inventory that were 50% complete with respect to conversion costs. The conversion cost in
this beginning work in process inventory was $52,200. An additional 55,000 units were started
into production during the month. There were 16,000 units in the ending work in process inventory
of the Welding Department that were 20% complete with respect to conversion costs. A total of
$284,160 in conversion costs were incurred in the department during the month.
The cost per equivalent unit for conversion costs is closest to:
A) $5.550
B) $4.608
C) $5.800
D) $5.167
33) Crimp Corporation uses the FIFO method in its process costing system. Department A had
10,000 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 $20,000 in materials cost and
$11,000 in conversion cost. During January, materials costs were $2.00 per equivalent unit and
conversion costs were $2.50 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) $35,000
B) $31,000
C) $46,000
D) $337,500
34) Dorman Music Corporation manufactures guitars and uses a FIFO process costing system. The
following information relates to September production:
Number
of units
Percent Complete
with Respect to
Conversion costs
Work in process, September 1
10,000
20
%
Units started into production
45,000
Work in process, September 30
4,000
75
%
Conversion cost in work in process on September 1
$
32,000
Conversion cost added to production during September
842,400
Total cost
$
874,400
The amount of conversion cost that should be assigned to the guitars in work in process on
September 30 is closest to:
A) $48,600
B) $874,400
C) $842,400
D) $48,000
35) Merced Corporation has a process costing system and uses the FIFO method. For May, the
company’s beginning work in process inventory was 75% complete with respect to conversion,
and the ending work in process inventory was 80% complete with respect to conversion.
Information on units processed and conversion costs incurred during May follow:
Units
Conversion
Work in process inventory on May 1
28,000
$
44,000
Units started into production, and costs incurred during the
month
130,000
$
266,700
Units completed and transferred to finished goods during the
month
108,000
Work in process inventory on May 31
50,000
The amount of conversion cost in the ending work in process inventory was:
A) $84,000
B) $80,000
C) $222,700
D) $68,000
Conversion
To complete beginning work in process inventory:
Ending work in process inventory:
Conversion: 50,000 units × 80%
Equivalent units of production
36) Roger Corporation uses the FIFO method in its process costing system. The following data are
taken from the accounting records of a particular department for June:
Beginning work in process inventory:
Cost
$
80,000
Units
20,000
Units
Percent completion:
Materials
100
%
Conversion
60
%
Units completed and transferred out
75,000
Units
Cost per equivalent unit:
Material
$
3.50
Conversion
$
1.00
The cost of the 75,000 units transferred out of the department during June is closest to:
A) $302,500
B) $263,000
C) $335,500
D) $337,500
37) Tabet Corporation uses the FIFO method in its process costing system. Operating data for the
Curing Department for the month of March appear below:
Units
Percent Complete
with Respect to
Conversion
Beginning work in process inventory
5,700
70
%
Transferred in from the prior department during March
57,000
Completed and transferred to the next department during
March
58,700
Ending work in process inventory
4,000
90
%
According to the company’s records, the conversion cost in beginning work in process inventory
was $20,349 at the beginning of March. The cost per equivalent unit for conversion costs for
March was $5.00. How much conversion cost would be assigned to the units completed and
transferred out of the department during March?
A) $273,550
B) $293,899
C) $285,000
D) $293,500
To complete beginning work in process:
Units started and completed
Ending work in process:
Conversion: 4,000 units × 90%
Equivalent units of production
38) Marlow Corporation uses the FIFO method in its process costing system. Department A’s
beginning work in process inventory consisted of 12,000 units, 100% complete with respect to
materials and 60% complete with respect to conversion costs. The total cost of this inventory was
$76,400. A total of 25,000 units were transferred out during the month. The costs per equivalent
unit were computed to be $3.40 for materials and $4.70 for conversion costs. The cost of the units
completed and transferred out was closest to:
A) $195,540
B) $146,100
C) $202,500
D) $204,260
39) Steven Corporation uses the FIFO method in its process costing system. The following data
were taken from the accounting records of a particular department for last month:
Beginning work in process inventory:
(10,000 units; materials 100% complete, conversion 60%
complete)
$
17,500
Units completed and transferred out during the month
60,000
Units
Cost per equivalent unit:
Materials
$
2.50
Conversion
$
2.00
The cost of units transferred out of the department during the month is:
A) $270,000
B) $242,500
C) $254,500
D) $250,500
To complete beginning work in process inventory:
40) In May, one of the processing departments at Messerli Corporation had beginning work in
process inventory of $14,000 and ending work in process inventory of $35,000. During the month,
$148,000 of costs were added to production and the cost of units transferred out from the
department was $127,000. The company uses the FIFO method in its process costing system. In
the department’s cost reconciliation report for May, the total cost to be accounted for would be:
A) $162,000
B) $324,000
C) $49,000
D) $310,000