101
82) In February, one of the processing departments at Brandstetter Corporation had beginning
work in process inventory of $24,000 and ending work in process inventory of $18,000. During the
month, the cost of units transferred out from the department was $249,000. The company uses the
FIFO method in its process costing system.
In the department’s cost reconciliation report for February, the costs added to production in the
department would be:
A) $243,000
B) $255,000
C) $225,000
D) $231,000
83) In February, one of the processing departments at Brandstetter Corporation had beginning
work in process inventory of $24,000 and ending work in process inventory of $18,000. During the
month, the cost of units transferred out from the department was $249,000. The company uses the
FIFO method in its process costing system.
In the department’s cost reconciliation report for February, the total cost accounted for would be:
A) $534,000
B) $267,000
C) $42,000
D) $510,000
104
84) Sharp Corporation has a process costing system. The following data relate to the company’s
Mixing Department for a recent month:
Units
Conversion Percent
Complete
Beginning work in process inventory
5,000
60
%
Units started into production
40,000
Units completed and transferred out
37,000
Ending work in process inventory
8,000
25
%
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.
106
85) Claus Corporation manufactures a single product and uses process costing. As of the beginning
of January, the company successfully implemented lean production. As a result, no work in
process inventories were on hand at the end of January, as indicated by the data below:
Percent Complete
Units
Materials
Conversion
Work in process, January 1
30,000
75
%
25
%
Started into production
425,000
Completed and transferred out
455,000
Work in process, January 31
0
Required:
a. Assume the company uses the weighted-average method. Compute the equivalent units of
production for January.
b. Assume that the company uses the FIFO method. Compute the equivalent units of production
for January.
c. If the company starts 450,000 units into production during the following month (February) has
no ending work in process inventory in that month, what would be the equivalent units of
production under the weighted-average method? The FIFO method?
86) The following data pertain to the Milling Department of Malmberg Corporation for July. The
company uses the FIFO method in its process costing.
Percent Complete
Units
Materials
Conversion
Work in process, January 1
800
80
%
35
%
Units started into production during July
9,400
Units completed during July and transferred
to the next department
8,300
Work in process, July 31
1,900
75
%
40
%
Required:
Compute the equivalent units of production for both materials and conversion costs for the Milling
Department for July using the FIFO method.
Conversion
To complete beginning work in process:
Units started and completed during the period
Ending work in process:
Materials: 1,900 units × 75%
Conversion: 1,900 units × 40%
Equivalent units of production
87) Clarks Corporation uses the FIFO method in its process costing. The following data pertain to
its Assembly Department for June.
Units in process, June 1: materials 85% complete, conversion 20% complete
700
Units started into production during June
9,400
Units completed and transferred to the next department
8,300
Units in process, June 30: materials 90% complete, conversion 60% complete
1,800
Required:
Determine the equivalent units of production for the Assembly Department for June using the
FIFO method.
Materials
To complete beginning work in process:
Units started and completed
Ending work in process:
Materials: 1,800 units × 90%
Conversion: 1,800 units × 60%
Equivalent units of production
88) Farsat 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.
Work in process, beginning:
Units in process
500
Percent complete with respect to materials
80
%
Percent complete with respect to conversion
20
%
Units started into production during the month
20,000
Work in process, ending:
Units in process
600
Percent complete with respect to materials
60
%
Percent complete with respect to conversion
50
%
Required:
Using the FIFO method, determine the equivalent units of production for materials and conversion
costs.
Materials
To complete beginning work in process:
Units started and completed
19,400
Ending work in process:
Materials: 600 units × 60%
Conversion: 600 units × 50%
Equivalent units of production
19,860
89) Lenning Corporation uses the FIFO method in its process costing. The following data pertain
to its Assembly Department for August.
Percent Complete
Units
Materials
Conversion
Work in process, August 1
300
75
%
10
%
Units started into production during August
6,100
Units completed during August and transferred
to the next department
5,600
Work in process, August 31
800
90
%
85
%
Required:
Compute the equivalent units of production for both materials and conversion costs for the
Assembly Department for August using the FIFO method.
Materials
Conversion
To complete beginning work in process:
Units started and completed during the period
Ending work in process:
Materials: 800 units × 90%
Conversion: 800 units × 85%
Equivalent units of production
90) The following data have been provided by Corby Corporation for the Circuit Prep Department.
The company uses the FIFO method in its process costing.
Units in process, August 1: materials 60% complete, conversion 45% complete
500
Units started into production during August
8,900
Units started and completed during August
7,800
Units completed and transferred to the next department during August
8,300
Units in process, August 31: materials 80% complete, conversion 40%
complete
1,100
Required:
Determine the equivalent units of production for the Circuit Prep Department for August using the
FIFO method.
Materials
To complete beginning work in process:
Units started and completed
Ending work in process:
Materials: 1,100 units × 80%
Conversion: 1,100 units × 40%
Equivalent units of production
91) The Dover Corporation uses the FIFO method in its process costing system. The following
information relates to one month’s activity in the Cooking Department of the company:
Units
Conversion
Percent
Complete
Beginning work in process inventory
20,000
40
%
Units started into production
100,000
Units completed and transferred out
105,000
Ending work in process inventory
15,000
80
%
There was $23,600 of conversion cost in the beginning work in process inventory. During the
month, $327,000 in additional conversion cost was incurred.
Required:
a. Determine the equivalent units of production for conversion for the month.
b. Determine the cost per equivalent unit of production for conversion for the month.
c. Determine the total cost assigned to the ending work in process inventory.
d. Determine the total cost transferred out during the month.
To complete beginning work in process inventory:
Conversion: 20,000 units ×(100% − 40%)
Ending work in process:
Conversion: 15,000 units × 80%
Equivalent units of production
115
92) 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.
Work in process, beginning:
Units in process
600
Percent complete with respect to materials
90
%
Percent complete with respect to conversion
10
%
Costs in the beginning inventory:
Materials cost
$
1,782
Conversion cost
$
1,374
Units started into production during the month
23,000
Units completed and transferred out
23,100
Costs added to production during the month:
Materials cost
$
71,021
Conversion cost
$
542,648
Work in process, ending:
Units in process
500
Percent complete with respect to materials
70
%
Percent complete with respect to conversion
70
%
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.