Accounting Chapter 4s 2 Index Corporation Uses The FIFO Method

22. 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:

23. Marten Corporation uses the FIFO 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 19,000 80%

Transferred in from the prior department during September 74,000

Ending work in process inventory 17,000 90%

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.)

24. 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:

25. 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:

Units Conversion Cost

Beginning work in process inventory 20,000 $40,000

Units started into production, and costs incurred during the month 150,000 $186,000

Units completed and transferred out 130,000

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

26. 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:

27. Tarten 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 9,000 10%

Transferred in from the prior department during March 57,000

Completed and transferred to the next department during March 65,000

Ending work in process inventory 1,000 70%

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?

28. 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:

29. 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:

30. 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:

31. Information about units processed and processing costs incurred during a recent month

in the Refining Department of a manufacturing company follow:

Number of Units Percent Completion Conversion Costs

Beginning work in process inventory 11,000 35%

Units started into production 120,000

Units completed and transferred out 114,000

Ending work in process inventory 17,000 30%

The beginning work in process inventory included $11,000 of conversion cost. During the month,

the Department incurred an additional $290,000 in conversion costs.

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?

4S-38

32. Information about units processed and processing costs incurred during a recent month