59) Activities in the Challenger Corporation’s Assembly Department for the month of March
follow:
Percent Complete
Units
Materials
Conversion
Work-in-process inventory, March 1
5,000
65
%
30
Started into production during March
65,000
Work-in-process inventory, March 31
3,000
35
%
25
Using the FIFO method, the equivalent units for conversion for March would be:
A) 66,250
B) 67,000
C) 64,250
D) 67,750
Conversion
To complete beginning work in process inventory:
Conversion: 5,000 units × (100% − 30%)
Ending work in process inventory:
Conversion: 3,000 units × 25%
Equivalent units of production
60) Owens Corporation uses a process costing system. For March, the beginning work in process
inventory consisted of 60,000 units that were 60% complete with respect to processing. The
ending work in process inventory for the month consisted of units that were 20% complete with
respect to processing. A summary of unit and cost data for the month follows:
Units
Processing
Cost
Work-in-process inventory, March 1
60,000
$
35,000
Units started into production and costs incurred during the
month
190,000
$
700,000
Units completed and transferred out
200,000
Assuming that Owens Corporation uses the weighted-average method, which of the following is
closest to the cost per equivalent unit for processing cost for March?
A) $4.08
B) $3.87
C) $3.68
D) $3.50
61) Owens Corporation uses a process costing system. For March, the beginning work in process
inventory consisted of 60,000 units that were 60% complete with respect to processing. The
ending work in process inventory for the month consisted of units that were 20% complete with
respect to processing. A summary of unit and cost data for the month follows:
Units
Processing
Cost
Work-in-process inventory, March 1
60,000
$
35,000
Units started into production and costs incurred during the
month
190,000
$
700,000
Units completed and transferred out
200,000
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?
A) $3.23
B) $3.98
C) $4.02
D) $4.22
62) The information below was obtained from the records of one of the departments of Cushing
Corporation for the month of August. The company uses the FIFO method in its process costing
system.
Units
Percent Complete
Labor and Overhead
Work in process, August 1
10,000
25
%
Units completed and transferred out
75,000
Work in process, August 31
20,000
50
%
All materials are added at the beginning of the process.
The equivalent units for materials for the month of August are:
A) 75,000 units
B) 85,000 units
C) 87,500 units
D) 95,000 units
To complete beginning work in process:
0
Units started and completed (75,000 − 10,000)
Ending work in process:
Materials: 20,000 units × 100%
Equivalent units of production
63) The information below was obtained from the records of one of the departments of Cushing
Corporation for the month of August. The company uses the FIFO method in its process costing
system.
Units
Percent Complete
Labor and Overhead
Work in process, August 1
10,000
25
%
Units completed and transferred out
75,000
Work in process, August 31
20,000
50
%
All materials are added at the beginning of the process.
The equivalent units for labor and overhead for the month of August are:
A) 85,000 units
B) 95,000 units
C) 87,500 units
D) 82,500 units
To complete beginning work in process:
Units started and completed
Ending work in process:
Labor and Overhead: 20,000 units × 50%
Equivalent units of production
64) Sumptuous Beer Corporation manufactures beer in two departments, Fermenting and Bottling.
In the Fermenting Department, ingredients are placed in a large vat and fermented for three days.
The beer is then transferred over to Bottling where it is further purified and bottled. Sumptuous
uses a FIFO process cost system to collect costs in both departments. On May 1, the Fermenting
Department had 32,000 gallons (units) in process. These gallons were 100% complete with respect
to materials (ingredients) and 80% complete with respect to conversion cost. During May,
Fermenting started an additional 460,000 gallons into production. On May 31, Fermenting had
18,000 gallons in work in process. These gallons were 100% complete with respect to materials
and 60% complete with respect to conversion cost.
What are the Fermenting Department’s equivalent units (gallons) of production related to materials
for May?
A) 442,000
B) 460,000
C) 474,000
D) 492,000
65) Sumptuous Beer Corporation manufactures beer in two departments, Fermenting and Bottling.
In the Fermenting Department, ingredients are placed in a large vat and fermented for three days.
The beer is then transferred over to Bottling where it is further purified and bottled. Sumptuous
uses a FIFO process cost system to collect costs in both departments. On May 1, the Fermenting
Department had 32,000 gallons (units) in process. These gallons were 100% complete with respect
to materials (ingredients) and 80% complete with respect to conversion cost. During May,
Fermenting started an additional 460,000 gallons into production. On May 31, Fermenting had
18,000 gallons in work in process. These gallons were 100% complete with respect to materials
and 60% complete with respect to conversion cost.
What are the Fermenting Department’s equivalent units (gallons) of production related to
conversion costs for May?
A) 459,200
B) 474,800
C) 477,200
D) 478,400
66) Normand Corporation uses the FIFO method in its process costing system. Data concerning
the first processing department for the most recent month are listed below:
Beginning work in process inventory:
Units in beginning work in process inventory
700
Materials costs
$
8,700
Conversion costs
$
3,700
Percent complete with respect to materials
70
%
Percent complete with respect to conversion
10
%
Units started into production during the month
6,400
Units transferred to the next department during the month
5,600
Materials costs added during the month
$
92,200
Conversion costs added during the month
$
269,600
Ending work in process inventory:
Units in ending work in process inventory
1,500
Percent complete with respect to materials
80
%
Percent complete with respect to conversion
25
%
What are the equivalent units for materials for the month in the first processing department?
A) 4,900
B) 1,200
C) 6,310
D) 7,100
67) Normand Corporation uses the FIFO method in its process costing system. Data concerning
the first processing department for the most recent month are listed below:
Beginning work in process inventory:
Units in beginning work in process inventory
700
Materials costs
$
8,700
Conversion costs
$
3,700
Percent complete with respect to materials
70
%
Percent complete with respect to conversion
10
%
Units started into production during the month
6,400
Units transferred to the next department during the month
5,600
Materials costs added during the month
$
92,200
Conversion costs added during the month
$
269,600
Ending work in process inventory:
Units in ending work in process inventory
1,500
Percent complete with respect to materials
80
%
Percent complete with respect to conversion
25
%
The cost per equivalent unit for conversion costs for the first department for the month is closest
to:
A) $45.66
B) $52.86
C) $47.94
D) $48.14
68) Ozdemir Corporation uses the FIFO method in its process costing system. Data concerning the
first processing department for the most recent month are listed below:
Beginning work in process inventory:
Units in beginning work in process inventory
200
Materials costs
$
1,800
Conversion costs
$
600
Percent complete with respect to materials
55
%
Percent complete with respect to conversion
10
%
Units started into production during the month
5,000
Units transferred to the next department during the month
4,500
Materials costs added during the month
$
74,800
Conversion costs added during the month
$
128,800
Ending work in process inventory:
Units in ending work in process inventory
700
Percent complete with respect to materials
85
%
Percent complete with respect to conversion
70
%
What are the equivalent units for conversion costs for the month in the first processing
department?
A) 490
B) 4,300
C) 4,970
D) 5,200
69) Ozdemir Corporation uses the FIFO method in its process costing system. Data concerning the
first processing department for the most recent month are listed below:
Beginning work in process inventory:
Units in beginning work in process inventory
200
Materials costs
$
1,800
Conversion costs
$
600
Percent complete with respect to materials
55
%
Percent complete with respect to conversion
10
%
Units started into production during the month
5,000
Units transferred to the next department during the month
4,500
Materials costs added during the month
$
74,800
Conversion costs added during the month
$
128,800
Ending work in process inventory:
Units in ending work in process inventory
700
Percent complete with respect to materials
85
%
Percent complete with respect to conversion
70
%
The cost per equivalent unit for materials for the month in the first processing department is closest
to:
A) $16.36
B) $14.38
C) $16.62
D) $15.01
70) Mullins Corporation uses the FIFO method in its process costing system. Data concerning the
first processing department for the most recent month are listed below:
Beginning work in process inventory:
Units in beginning work in process inventory
700
Materials costs
$
11,500
Conversion costs
$
22,200
Percent complete with respect to materials
75
%
Percent complete with respect to conversion
65
%
Units started into production during the month
8,600
Units transferred to the next department during the month
7,800
Materials costs added during the month
$
159,300
Conversion costs added during the month
$
348,500
Ending work in process inventory:
Units in ending work in process inventory
1,500
Percent complete with respect to materials
65
%
Percent complete with respect to conversion
50
%
What are the equivalent units for materials for the month in the first processing department?
A) 975
B) 8,250
C) 9,300
D) 7,100
71) Mullins Corporation uses the FIFO method in its process costing system. Data concerning the
first processing department for the most recent month are listed below:
Beginning work in process inventory:
Units in beginning work in process inventory
700
Materials costs
$
11,500
Conversion costs
$
22,200
Percent complete with respect to materials
75
%
Percent complete with respect to conversion
65
%
Units started into production during the month
8,600
Units transferred to the next department during the month
7,800
Materials costs added during the month
$
159,300
Conversion costs added during the month
$
348,500
Ending work in process inventory:
Units in ending work in process inventory
1,500
Percent complete with respect to materials
65
%
Percent complete with respect to conversion
50
%
What are the equivalent units for conversion costs for the month in the first processing
department?
A) 8,095
B) 7,100
C) 9,300
D) 750