Accounting Chapter 4a Chapter 4a_version1 Compute the equivalent units of production for both materials and conversion costs for the Assembly Department for August using the first-in, first-out method

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Student name:__________

1) Lenning Corporation uses the first-in, first-out method in its process costing. The

following data pertain to its Assembly Department for August.

Percent Complete

Units Materials Conversion

Work in process, August 1 950 40% 30%

Units started into production during August 9,500

Units completed during August and transferred to the next

department 8,500

Work in process, August 31 1,950 60% 20%

Required:

Compute the equivalent units of production for both materials and conversion costs for the

Assembly Department for August using the first-in, first-out method.

2) Easy Incorporated uses the first-in, first-out 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 1,450

Percent complete with respect to materials 90%

Percent complete with respect to conversion 10%

Costs in the beginning inventory:

Materials cost $ 1,918

Conversion cost $ 1,510

Units started into production during the month 24,700

Units completed and transferred out 24,800

Costs added to production during the month:

Materials cost $ 71,871

Conversion cost $ 543,498

Work in process, ending:

Units in process 1,350

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Percent complete with respect to materials 70%

Percent complete with respect to conversion 70%

Required:

Using the first-in, first-out 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. (Round your

answers to 2 decimal places.)

c. Determine the cost of ending work in process inventory. (Round “Cost per equivalent

unit” to 2 decimal places. Round your final answer to the nearest whole number.)

d. Determine the cost of units transferred out of the department during the month. (Round

“Cost per equivalent unit” to 2 decimal places. Round your final answer to the nearest

whole number.)

3) Daosta Incorporated uses the first-in, first-out 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 60%

Percent complete with respect to conversion 10%

Costs in the beginning inventory:

Materials cost $ 585

Conversion cost $ 2,141

Units started into production during the month 11,000

Units completed and transferred out 11,400

Costs added to production during the month:

Materials cost $ 29,627

Conversion cost $ 306,516

Work in process, ending:

Units in process 200

Percent complete with respect to materials 70%

Percent complete with respect to conversion 70%

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Required: Using the first-in, first-out 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. (Round your

final answers to 2 decimal places.)

c. Determine the cost of ending work in process inventory.

d. Determine the cost of units transferred out of the department during the month.

4) Rauzman Corporation uses the first-in, first-out method in its process costing. The

following data concern the company’s Mixing Department for the month of August.

Materials Conversion

Work in process, August 1 $ 15,726 $ 22,726

Cost added to production in the Mixing Department during August $

188,517 $ 167,048

Equivalent units of production for August 5,730 5,320

Required:

Compute the cost per equivalent unit for materials and conversion for the Mixing Department

for August using the first-in, first-out method. (Round your final answers to 2 decimal places.)

5) Crone Corporation uses the first-in, first-out method in its process costing system. The

following data concern the company’s Assembly Department for the month of August.

Cost in beginning work in process inventory $ 1,160

Units started and completed this month 2,760

Materials Conversion

Cost per equivalent unit $ 18.70 $ 35.40

Equivalent units required to complete the units in beginning work in

process inventory 150 130

Equivalent units in ending work in process inventory 100 96

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Required:

Determine the cost of ending work in process inventory and the cost of units transferred out of

the department during August using the first-in, first-out method. (Round final answers to the

nearest whole dollar amount.)

6) 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 first-in,

first-out method.

7) 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

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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 first-in, first-out 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 first-in, first-out method?

8) The following data pertain to the Milling Department of Malmberg Corporation for July.

The company uses the first-in, first-out method in its process costing.

Percent Complete

Units Materials Conversion

Work in process, July 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 first-in, first-out method.

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9) Clarks Corporation uses the first-in, first-out 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

first-in, first-out method.

10) Farsat Incorporated uses the first-in, first-out 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 first-in, first-out method, determine the equivalent units of production for materials

and conversion costs.

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11) Lenning Corporation uses the first-in, first-out 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 first-in, first-out method.

12) The following data have been provided by Corby Corporation for the Circuit Prep

Department. The company uses the first-in, first-out 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 first-in, first-out method.

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13) The Dover Corporation uses the first-in, first-out 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.

14) Easy Incorporated uses the first-in, first-out 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:

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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 first-in, first-out 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.

15) DaostaIncorporated uses the first-in, first-out 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 400

Percent complete with respect to materials 50%

Percent complete with respect to conversion 90%

Costs in the beginning inventory:

Materials cost $ 1,300

Conversion cost $ 9,576

Units started into production during the month 11,000

Units completed and transferred out 10,600

Costs added to production during the month:

Materials cost $ 70,056

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Conversion cost $ 279,760

Work in process, ending:

Units in process 800

Percent complete with respect to materials 90%

Percent complete with respect to conversion 20%

Required:

Using the first-in, first-out 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.

16) Rauzman Corporation uses the first-in, first-out method in its process costing. The

following data concern the company’s Mixing Department for the month of August.

Materials Conversion

Work in process, August 1 $ 25,641 $ 15,300

Cost added to production in the Mixing Department during August $

170,940 $ 179,775

Equivalent units of production for August 7,770 7,650

Required:

Compute the cost per equivalent unit for materials and conversion for the Mixing Department

for August using the first-in, first-out method.

17) Zubris Corporation uses the first-in, first-out method in its process costing. The following

data concern the company’s Assembly Department for the month of January.

Materials Conversion

Work in process, January 1 $ 4,761 $ 5,365

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Cost added to production in the Assembly Department during January

$ 26,496 $ 34,040

Equivalent units of production for January 2,070 1,850

Required:

Compute the costs per equivalent unit for the Assembly Department for January using the first-

in, first-out method.

18) The following data has been provided by Glasco Incorporated, a company that uses the

first-in, first-out method in its process costing system. The data concern the company’s Shaping

Department for the month of March.

Cost in beginning work in process inventory $ 1,690

Units started and completed this month 4,110

Materials Conversion

Cost per equivalent unit $ 12.50 $ 45.70

Equivalent units required to complete the units in beginning work

in process inventory 460 260

Equivalent units in ending work in process inventory 220 176

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 first-in, first-out method.

19) Crone Corporation uses the first-in, first-out method in its process costing system. The

following data concern the company’s Assembly Department for the month of August.

Cost in beginning work in process inventory $ 1,920

Units started and completed this month 3,130

Materials Conversion

Cost per equivalent unit $ 9.50 $ 20.40

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Equivalent units required to complete the units in beginning work

in process inventory 360 140

Equivalent units in ending work in process inventory 330 264

Required:

Determine the cost of ending work in process inventory and the cost of units transferred out of

the department during August using the first-in, first-out method.

20) 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 first-in, first-out method in its process

costing system.

Required:

Construct a cost reconciliation report for the department for the month of February.

21) In October, one of the processing departments at Ingersoll Corporation had beginning

work in process inventory of $16,000 and ending work in process inventory of $29,000. During

the month, $191,000 of costs were added to production. The company uses the first-in, first-out

method in its process costing system.

Required:

Construct a cost reconciliation report for the department for the month of October.

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22) In December, one of the processing departments at Bonine Corporation had ending work

in process inventory of $32,000. During the month, $264,000 of costs were added to production

and the cost of units transferred out from the department was $257,000. The company uses the

first-in, first-out method in its process costing system.

Required:

Construct a cost reconciliation report for the department for the month of December.

23) The weighted-average method of process costing differs from the first-in, first-out

method of process costing in that the weighted-average method:

A) does not consider the degree of completion of beginning work in process inventory

when computing equivalent units of production.

B) considers ending work in process inventory to be fully complete.

C) will always yield a higher cost per equivalent unit.

D) All of the choices are correct.

24) All production costs have been steadily rising in the Donner Company for several

periods. The company maintains large work in process inventories. Donner Company’s cost per

equivalent unit computed using the first-in, first-out method would be:

A) the same as that computed under the weighted-average method.

B) higher than that computed under the weighted-average method.

C) lower than that computed under the weighted-average method.

D) could be lower than, the same as, or higher than that computed under the weighted-

average method.

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25) Equivalent units of production for a process costing system using the first-in, first-out

method are equal to:

A) Units completed during the period + Equivalent units in the ending work in process

inventory.

B) Units transferred out + Equivalent units in ending work in process inventory +

Equivalent units in beginning work in process inventory.

C) Units started and completed during the period + Equivalent units in the ending work

in process inventory.

D) Units completed during the period and transferred out.

26) Under the first-in, first-out method, in addition to the cost of units started and completed

during the period, the cost of the units transferred out of the department includes:

The cost in beginning work in process inventory The cost to

complete the units in beginning work in process inventory

A) Yes Yes

B) No Yes

C) Yes No

D) No No

A) Choice A

B) Choice B

C) Choice C

D) Choice D

27) Under the first-in, first-out method, the cost per equivalent unit equals:

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A) Cost of beginning work in process inventory÷ Equivalent units of production.

B) (Cost of beginning work in process inventory + Cost added during the period)÷

Equivalent units of production.

C) Cost added during the period ÷ Equivalent units of production.

D) (Cost added during the period −Cost of beginning work in process inventory)÷

Equivalent units of production.

28) Intask Corporation uses the first-in, first-out method in its process costing system.

Beginning inventory in the mixing department consisted of 7,700 units that were 75% complete

with respect to conversion costs. Ending work in process inventory consisted of 6,700 units that

were 60% complete with respect to conversion costs. If 15,400 units were transferred to the next

processing department during the period, the equivalent units of production for conversion cost

would be:

A) 16,325 units

B) 13,645 units

C) 17,325 units

D) 16,400 units

29) Intask Corporation uses the first-in, first-out method in its process costing system.

Beginning inventory in the mixing department consisted of 6,000 units that were 75% complete

with respect to conversion costs. Ending work in process inventory consisted of 5,000 units that

were 60% complete with respect to conversion costs. If 12,000 units were transferred to the next

processing department during the period, the equivalent units of production for conversion cost

would be:

A) 12,500 units

B) 10,500 units

C) 13,500 units

D) 13,000 units

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30) Gaba Corporation uses the first-in, first-out method in its process costing system. The

Grinding Department started the month with 17,600 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

Grinding Department. During the month 76,000 units were completed in the Grinding

Department and transferred to the next processing department. There were 7,600 units in the

ending work in process inventory of the Grinding Department that were 10% complete with

respect to conversion costs. What were the equivalent units of production for conversion costs in

the Grinding Department for the month?

A) 76,760

B) 66,200

C) 56,000

D) 76,000

31) Gaba Corporation uses the first-in, first-out method in its process costing system. The

Grinding Department started the month with 17,000 units in its beginning work in process

inventory that were 60% complete with respect to conversion costs. An additional 60,000 units

were transferred in from the prior department during the month to begin processing in the

Grinding Department. During the month 70,000 units were completed in the Grinding

Department and transferred to the next processing department. There were 7,000 units in the

ending work in process inventory of the Grinding Department that were 10% complete with

respect to conversion costs. What were the equivalent units of production for conversion costs in

the Grinding Department for the month?

A) 70,700

B) 60,500

C) 50,000

D) 70,000

32) Onyemah Corporation uses the first-in, first-out method in its process costing system.

Operating data for the Brazing Department for the month of November appear below:

Units Percent Complete with Respect to Conversion

Beginning work in process inventory 8,200 40%

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Transferred in from the prior department during November 46,500

Completed and transferred to the next department during November

44,600

Ending work in process inventory 10,100 70%

What were the equivalent units of production for conversion costs in the Brazing Department for

November?

A) 51,670

B) 48,390

C) 44,600

D) 48,400

33) Onyemah Corporation uses the first-in, first-out method in its process costing system.

Operating data for the Brazing Department for the month of November appear below:

Units Percent Complete with Respect to Conversion

Beginning work in process inventory 7,300 40%

Transferred in from the prior department during November 37,500

Completed and transferred to the next department during November

35,600

Ending work in process inventory 9,200 70%

What were the equivalent units of production for conversion costs in the Brazing Department for

November?

A) 42,040

B) 39,120

C) 35,600

D) 39,400

34) Salmont Corporation uses the first-in, first-out method in its process costing system. The

company reported 36,000equivalent units of production for materials last month. The company’s

beginning work in process inventory consisted of 6,500 units, 35% complete with respect to

materials. The ending work in process inventory consisted of 4,500 units, 65% complete with

respect to materials. The number of units started during the month was:

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A) 36,275 units

B) 34,650 units

C) 33,350 units

D) 35,350 units

35) Salmont Corporation uses the first-in, first-out method in its process costing system. The

company reported 30,800 equivalent units of production for materials last month. The company’s

beginning work in process inventory consisted of 8,000 units, 75% complete with respect to

materials. The ending work in process inventory consisted of 6,000 units, 80% complete with

respect to materials. The number of units started during the month was:

A) 32,000 units

B) 24,000 units

C) 6,800 units

D) 30,000 units

36) Kalyan Corporation uses the first-in, first-out method in its process costing system.

Operating data for the Enameling Department for the month of May appear below:

Units Percent Complete with Respect to Conversion

Beginning work in process inventory 3,200 20%

Transferred in from the prior department during May 78,000

Ending work in process inventory 8,600 70%

What were the equivalent units of production for conversion costs in the Enameling Department

for May?

A) 83,400

B) 72,600

C) 77,980

D) 78,620

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37) Kalyan Corporation uses the first-in, first-out method in its process costing system.

Operating data for the Enameling Department for the month of May appear below:

Units Percent Complete with Respect to Conversion

Beginning work in process inventory 1,200 20%

Transferred in from the prior department during May 58,000

Ending work in process inventory 6,600 70%

What were the equivalent units of production for conversion costs in the Enameling Department

for May?

A) 63,400

B) 52,600

C) 56,980

D) 57,220

38) Marston Corporation uses the first-in, first-out 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:

A) 41,500 units

B) 34,000 units

C) 25,000 units

D) 72,500 units

39) Carver Corporation uses the first-in, first-out method in its process costing system. The

Assembly Department started the month with 2,700 units in its beginning work in process

inventory that were 60% complete with respect to conversion costs. An additional 73,000 units

were transferred in from the prior department during the month to begin processing in the

Assembly Department. There were 9,700 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?

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A) 66,000

B) 69,230

C) 70,850

D) 80,000

40) Carver Corporation uses the first-in, first-out 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

41) Billings Corporation uses the first-in, first-out method in its process costing system. On

July 1, Department A had 10,000 units in process that were 80% complete with respect to

conversion. On July 31 the department had 8,000 units in process that were 60% complete with

respect to conversion. The department transferred 40,000 units out during the month, of which

10,000 units came from the beginning work in process inventory, and 30,000 units were started

and completed during the month. All materials are added at the beginning of the process in

Department A. What are the equivalent units of production for the month for materials and

conversion, respectively?

A) 38,000 units and 36,800 units

B) 38,000 units and 38,000 units

C) 48,000 units and 44,800 units

D) 48,000 units and 48,000 units

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42) Ricardo Corporation uses the first-in, first-out method in its process costing system.

During June, 36,000 units were completed in Department M. Of this total, 6,000 were in the

beginning work in process and the remainder were started and completed during the month. The

work in process at June 1 was 40% complete with respect to conversion costs. Materials are

added at the beginning of the process. A total of 8,000 units were in work in process at June 30;

these units were 80% complete with respect to conversion costs. The equivalent units of

production for conversion costs for June is closest to:

A) 32,800 units

B) 33,600 units

C) 40,000 units

D) 36,400 units

43) Laurant Corporation uses the first-in, first-out method in its process costing system.

Department A is the first stage of the company’s production process. The following information

is available for conversion costs for the month of May for Department A:

Units

Work in process, beginning (40% complete with respect to conversion

costs) 5,400

Started in May 46,000

Completed in May and transferred to Department B 41,000

Work in process, ending (30% complete with respect to conversion

costs) 10,400

The equivalent units of production for conversion costs for the month is closest to:

A) 37,760 units

B) 38,720 units

C) 38,840 units

D) 41,960 units

44) Laurant Corporation uses the first-in, first-out method in its process costing system.

Department A is the first stage of the company’s production process. The following information

is available for conversion costs for the month of May for Department A:

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Units

Work in process, beginning (40% complete with respect to conversion

costs) 5,000

Started in May 42,000

Completed in May and transferred to Department B 37,000

Work in process, ending (24% complete with respect to conversion

costs) 10,000

The equivalent units of production for conversion costs for the month is closest to:

A) 34,000 units

B) 34,400 units

C) 35,000 units

D) 37,400 units

45) Ibarra Corporation uses the first-in, first-out method in its process costing system. The

first processing department, the Forming Department, started the month with 16,600 units in its

beginning work in process inventory that were 20% complete with respect to conversion costs.

The conversion cost in this beginning work in process inventory was $25,250. An additional

103,000 units were started into production during the month and 106,000 units were completed

and transferred to the next processing department. There were 13,600 units in the ending work in

process inventory of the Forming Department that were 30% complete with respect to

conversion costs. A total of $599,123 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) $5.80

B) $5.61

C) $5.12

D) $5.82

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46) Ibarra Corporation uses the first-in, first-out method in its process costing system. The

first processing department, the Forming Department, started the month with 16,000 units in its

beginning work in process inventory that were 20% complete with respect to conversion costs.

The conversion cost in this beginning work in process inventory was $19,250. An additional

97,000 units were started into production during the month and 100,000 units were completed

and transferred to the next processing department. There were 13,000 units in the ending work in

process inventory of the Forming Department that were 30% complete with respect to

conversion costs. A total of $593,123 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) $6.100

B) $5.890

C) $5.422

D) $6.115

47) Krumbly Corporation uses the first-in, first-out 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:

A) $9,600

B) $19,600

C) $23,200

D) $16,000

48) Maccari Corporation uses the first-in, first-out method in its process costing system.

Operating data for the Casting Department for the month of September appear below:

Units Percent Complete with Respect to Conversion

Beginning work in process inventory 24,000 80%

Transferred in from the prior department during September 61,000

Ending work in process inventory 10,000 60%

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According to the company’s records, the conversion cost in beginning work in process inventory

was $61,824 at the beginning of September. Additional conversion costs of $206,412 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) $3.340

B) $3.220

C) $3.156

D) $3.384

49) Que Corporation uses the first-in, first-out 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

50) Overboard Corporation uses the first-in, first-out 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

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Beginning work in process inventory 23,900 $ 42,000

Units started into production, and costs incurred during the month

163,000 $ 243,000

Units completed and transferred out 143,000

The cost per equivalent unit for conversion cost is closest to:

A) $1.80

B) $1.38

C) $1.32

D) $1.85

51) Overboard Corporation uses the first-in, first-out 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

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52) Eban Corporation uses the first-in, first-out method in its process costing system. The

first processing department, the Welding Department, started the month with 24,000 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 $72,200. An additional

75,000 units were started into production during the month. There were 20,000 units in the

ending work in process inventory of the Welding Department that were 20% complete with

respect to conversion costs. A total of $324,160 in conversion costs were incurred in the

department during the month.

The cost per equivalent unit for conversion costs is closest to:

A) $4.57

B) $4.41

C) $5.60

D) $4.97

53) Eban Corporation uses the first-in, first-out 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

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54) Crimp Corporation uses the first-in, first-out 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

55) Dorman Music Corporation manufactures guitars and uses a first-in, first-out 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

56) Merced Corporation has a process costing system and uses the first-in, first-out 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:

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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

57) Roger Corporation uses the first-in, first-out 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

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58) Tabet Corporation uses the first-in, first-out 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 6,600 70%

Transferred in from the prior department during March 57,900

Completed and transferred to the next department during March

59,600

Ending work in process inventory 4,900 90%

According to the company’s records, the conversion cost in beginning work in process inventory

was $21,249 at the beginning of March. The cost per equivalent unit for conversion costs for

March was $5.90. How much conversion cost would be assigned to the units completed and

transferred out of the department during March?

A) $324,382

B) $345,631

C) $332,700

D) $345,232

59) Tabet Corporation uses the first-in, first-out 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?

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A) $273,550

B) $293,899

C) $285,000

D) $293,500

60) Marlow Corporation uses the first-in, first-out 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

61) Steven Corporation uses the first-in, first-out 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

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62) In May, one of the processing departments at Messerli Corporation had beginning work

in process inventory of $23,000 and ending work in process inventory of $44,000. During the

month, $157,000 of costs were added to production and the cost of units transferred out from the

department was $136,000. The company uses the first-in, first-out 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) $180,000

B) $360,000

C) $67,000

D) $337,000

63) 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 first-in, first-out 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

64) In February, one of the processing departments at Wyke Corporation had ending work in

process inventory of $15,000. During the month, $264,000 of costs were added to production and

the cost of units transferred out from the department was $273,000. The company uses the first-

in, first-out method in its process costing system. In the department’s cost reconciliation report

for February, the total cost to be accounted for would be:

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A) $288,000

B) $576,000

C) $39,000

D) $552,000

65) Malmedy Corporation uses the first-in, first-out method in its process costing system. The

following data pertain to operations in the first processing department for a recent month:

Work in process, beginning:

Units in process ?

Percent complete with respect to materials 75%

Percent complete with respect to conversion 50%

Costs in the beginning inventory:

Materials cost $ 2,300

Conversion cost $ 3,600

Units started into production during the month 25,200

Units completed and transferred out during the month 24,000

Costs added to production during the month:

Materials cost $ 98,750

Conversion cost $ 220,500

Work in process, ending:

Units in process 2,000

Percent complete with respect to materials 80%

Percent complete with respect to conversion 45%

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

A) 600 units

B) 1,000 units

C) 800 units

D) 1,400 units

66) Malmedy Corporation uses the first-in, first-out method in its process costing system. The

following data pertain to operations in the first processing department for a recent month:

Work in process, beginning:

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Units in process ?

Percent complete with respect to materials 75%

Percent complete with respect to conversion 50%

Costs in the beginning inventory:

Materials cost $ 2,300

Conversion cost $ 3,600

Units started into production during the month 25,200

Units completed and transferred out during the month 24,000

Costs added to production during the month:

Materials cost $ 98,750

Conversion cost $ 220,500

Work in process, ending:

Units in process 2,000

Percent complete with respect to materials 80%

Percent complete with respect to conversion 45%

What was the cost per equivalent unit for materials during the month?

A) $3.95

B) $4.50

C) $2.00

D) $5.00

67) Qu Corporation uses the first-in, first-out 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 900

Materials costs $ 9,800

Conversion costs $ 9,200

Percent complete with respect to materials 55%

Percent complete with respect to conversion 30%

Units started into production during the month 8,400

Materials costs added during the month $ 130,400

Conversion costs added during the month $ 220,600

Ending work in process inventory:

Units in ending work in process inventory 2,200

Percent complete with respect to materials 65%

Percent complete with respect to conversion 25%

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

department?

A) 6,200

B) 8,400

C) 9,300

D) 7,100

68) Qu Corporation uses the first-in, first-out 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 900

Materials costs $ 9,800

Conversion costs $ 9,200

Percent complete with respect to materials 55%

Percent complete with respect to conversion 30%

Units started into production during the month 8,400

Materials costs added during the month $ 130,400

Conversion costs added during the month $ 220,600

Ending work in process inventory:

Units in ending work in process inventory 2,200

Percent complete with respect to materials 65%

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) $29.89

B) $34.07

C) $31.07

D) $31.38

69) Details of the manufacturing activity in Amy Corporation’s Assembly Department for the

month of December is given below:

Number of Units Labor and Overhead Percent Complete

Work in process inventory, December 1 10,000 70%

Started in assembly during the month 80,000

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Work in process inventory, December 31 15,000 40%

All materials are added at the beginning of processing in the Assembly Department.

The equivalent units for labor and overhead for the month, using the first-in, first-out method,

is:

A) 90,000

B) 70,000

C) 80,000

D) 74,000

70) Details of the manufacturing activity in Amy Corporation’s Assembly Department for the

month of December is given below:

Number of Units Labor and Overhead Percent Complete

Work in process inventory, December 1 10,000 70%

Started in assembly during the month 80,000

Work in process inventory, December 31 15,000 40%

All materials are added at the beginning of processing in the Assembly Department.

The equivalent units for material for the month, using the first-in, first-out method, is:

A) 80,000

B) 70,000

C) 74,000

D) 90,000

71) Details of the manufacturing activity in Amy Corporation’s Assembly Department for the

month of December is given below:

Number of Units Labor and Overhead Percent Complete

Work in process inventory, December 1 10,000 70%

Started in assembly during the month 80,000

Work in process inventory, December 31 15,000 40%

All materials are added at the beginning of processing in the Assembly Department.

The equivalent units for labor and overhead for the month, using the weighted-average method,

is:

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A) 162,000

B) 80,000

C) 81,000

D) 74,000

72) Details of the manufacturing activity in Amy Corporation’s Assembly Department for the

month of December is given below:

Number of Units Labor and Overhead Percent Complete

Work in process inventory, December 1 10,000 70%

Started in assembly during the month 80,000

Work in process inventory, December 31 15,000 40%

All materials are added at the beginning of processing in the Assembly Department.

The equivalent units for materials for the month, using the weighted-average method, is:

A) 81,000

B) 90,000

C) 70,000

D) 80,000

73) Activities in the Sargent Corporation’s Assembly Department for the month of March

follow:

Percent Complete

Units Materials Conversion

Work-in-process inventory, March 1 7,000 70% 35%

Started into production during March 66,000

Work-in-process inventory, March 31 5,000 45% 30%

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

A) 66,000

B) 68,000

C) 70,250

D) 71,000

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74) Activities in the Sargent Corporation’s Assembly Department for the month of March

follow:

Units Percent Complete

Materials Conversion

Work-in-process inventory, March 1 7,000 70% 35%

Started into production during March 66,000

Work-in-process inventory, March 31 5,000 45% 30%

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

A) 69,500

B) 68,000

C) 67,500

D) 71,000

75) Activities in the Sargent Corporation’s Assembly Department for the month of March

follow:

Units Percent Complete

Materials Conversion

Work-in-process inventory, March 1 7,000 70% 35%

Started into production during March 66,000

Work-in-process inventory, March 31 5,000 45% 30%

Using the first-in, first-out method, the equivalent units for materials for March would be:

A) 68,000

B) 65,350

C) 71,000

D) 67,000

76) Activities in the Sargent Corporation’s Assembly Department for the month of March

follow:

Units Percent Complete

Materials Conversion

Work-in-process inventory, March 1 7,000 70% 35%

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Started into production during March 66,000

Work-in-process inventory, March 31 5,000 45% 30%

Using the first-in, first-out method, the equivalent units for conversion for March would be:

A) 62,950

B) 65,050

C) 66,000

D) 67,050

77) Activity in Saggers Corporation’s Assembly Department for the month of March follows:

Units Percent Complete

Materials Conversion

Work-in-process inventory, March 1 6,000 60% 45%

Started into production during March 65,000

Work-in-process inventory, March 31 4,000 35% 20%

The equivalent units for conversion for March, using the weighted-average method, are:

A) 69,600 units

B) 67,800 units

C) 71,000 units

D) 69,000 units

78) Activity in Saggers Corporation’s Assembly Department for the month of March follows:

Units Percent Complete

Materials Conversion

Work-in-process inventory, March 1 6,000 60% 45%

Started into production during March 65,000

Work-in-process inventory, March 31 4,000 35% 20%

The equivalent units for materials for March, using the weighted-average method, are:

A) 69,000 units

B) 65,000 units

C) 68,400 units

D) 67,000 units

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79) Activity in Saggers Corporation’s Assembly Department for the month of March follows:

Units Percent Complete

Materials Conversion

Work-in-process inventory, March 1 6,000 60% 45%

Started into production during March 65,000

Work-in-process inventory, March 31 4,000 35% 20%

The equivalent units for conversion for March, using the first-in, first-out method, are:

A) 63,100 units

B) 65,000 units

C) 62,500 units

D) 65,100 units

80) Activity in Saggers Corporation’s Assembly Department for the month of March follows:

Units Percent Complete

Materials Conversion

Work-in-process inventory, March 1 6,000 60% 45%

Started into production during March 65,000

Work-in-process inventory, March 31 4,000 35% 20%

The equivalent units for materials for March, using the first-in, first-out method, are:

A) 64,800 units

B) 59,800 units

C) 66,000 units

D) 67,200 units

81) Activities in the Challenger Corporation’s Assembly Department for the month of March

follow:

Units Percent Complete

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% 20%

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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

82) Activities in the Challenger Corporation’s Assembly Department for the month of March

follow:

Units Percent Complete

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 first-in, first-out method, the equivalent units for conversion for March would be:

A) 66,250

B) 67,000

C) 64,250

D) 67,750

83) 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?

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A) $4.08

B) $3.87

C) $3.68

D) $3.50

84) 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 first-in, first-out 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

85) 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 first-in, first-out method in

its process costing system.

Units Percent Complete Labor and Overhead

Work in process, August 1 11,400 25%

Units completed and transferred out 82,000

Work in process, August 31 20,700 50%

All materials are added at the beginning of the process.

The equivalent units for materials for the month of August are:

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A) 82,000 units

B) 91,300 units

C) 95,200 units

D) 102,700 units

86) 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 first-in, first-out 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

87) 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 first-in, first-out 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:

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A) 85,000 units

B) 95,000 units

C) 87,500 units

D) 82,500 units

88) 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 first-in, first-out 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

89) Sumptuous Beer Corporation manufactures beer in two departments, Fermenting and