Accounting Chapter 4s 6 Pushkin Corporation Uses The Fifo Method

63. Pushkin 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 $3,600

Conversion costs $1,300

Percent complete with respect to materials 80%

Percent complete with respect to conversion 15%

Units started into production during the month 8,500

Units transferred to the next department during the month 7,900

Materials costs added during the month $168,700

Conversion costs added during the month $337,100

Ending work in process inventory:

Units in ending work in process inventory 800

Percent complete with respect to materials 50%

Percent complete with respect to conversion 30%

Note: Your answers may differ from those offered below due to rounding error. In all cases,

select the answer that is the closest to the answer you computed. To reduce rounding error, carry

out all computations to at least three decimal places.

What are the equivalent units for materials for the month in the first processing department?

64. Pushkin 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 $3,600

Conversion costs $1,300

Percent complete with respect to materials 80%

Percent complete with respect to conversion 15%

Units started into production during the month 8,500

Units transferred to the next department during the month 7,900

Materials costs added during the month $168,700

Conversion costs added during the month $337,100

Ending work in process inventory:

Units in ending work in process inventory 800

Percent complete with respect to materials 50%

Percent complete with respect to conversion 30%

Note: Your answers may differ from those offered below due to rounding error. In all cases,

select the answer that is the closest to the answer you computed. To reduce rounding error, carry

out all computations to at least three decimal places.

The cost per equivalent unit for conversion costs for the first department for the month is closest

to:

65. Pushkin 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 $3,600

Conversion costs $1,300

Percent complete with respect to materials 80%

Percent complete with respect to conversion 15%

Units started into production during the month 8,500

Units transferred to the next department during the month 7,900

Materials costs added during the month $168,700

Conversion costs added during the month $337,100

Ending work in process inventory:

Units in ending work in process inventory 800

Percent complete with respect to materials 50%

Percent complete with respect to conversion 30%

Note: Your answers may differ from those offered below due to rounding error. In all cases,

select the answer that is the closest to the answer you computed. To reduce rounding error, carry

out all computations to at least three decimal places.

The total cost transferred from the first processing department to the next processing

department during the month is closest to:

66. In April, one of the processing departments at Salatino Corporation had beginning work in

process inventory of $27,000 and ending work in process inventory of $36,000. During the month,

the cost of units transferred out from the department was $261,000. The company uses the FIFO

method in its process costing system.

In the department’s cost reconciliation report for April, the costs added to production in the

department would be:

67. In April, one of the processing departments at Salatino Corporation had beginning work in

process inventory of $27,000 and ending work in process inventory of $36,000. During the month,

the cost of units transferred out from the department was $261,000. The company uses the FIFO

method in its process costing system.

In the department’s cost reconciliation report for April, the total cost accounted for would be:

4S-110

68. Sharp Company 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 4,000 70%

Units started into production 30,000

Units completed and transferred out 29,000

Ending work in process inventory 5,000 30%

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.

4S-112

69. The following data have been provided by Felux Corporation for the Circuit Prep

Department. The company uses the FIFO method in its process costing.

Units in process, August 1: materials 70% complete, conversion 15% complete 700

Units started into production during August 7,500

Units started and completed during August 5,700

Units completed and transferred to the next department during August 6,400

Units in process, August 31: materials 90% complete, conversion 30% complete 1,800

Required:

Determine the equivalent units of production for the Circuit Prep Department for August using

the FIFO method.

4S-114

70. Toefield 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 60% complete, conversion 15% complete 800

Units started into production during June 7,600

Units completed and transferred to the next department 6,500

Units in process, June 30: materials 70% complete, conversion 45% complete 1,900

Required:

Determine the equivalent units of production for the Assembly Department for June using the

FIFO method.

4S-116

71. The following data pertain to the Milling Department of Vario Corporation for July. The

company uses the FIFO method in its process costing.

Percent Complete

Units Materials Conversion

Work in process, July 1 800 60% 25%

Units started into production during July 9,400

Units completed during July and transferred to the next department 8,400

Work in process, July 31 1,800 85% 75%

Required:

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

Milling Department for July using the FIFO method.

4S-118

72. Voyer 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 1 700 70% 30%

Units started into production during August 6,900

Units completed during August and transferred to the next department 5,900

Work in process, August 31 1,700 50% 25%

Required:

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

Assembly Department for August using the FIFO method.

4S-120

73. Farwest 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 800

Percent complete with respect to materials 70%

Percent complete with respect to conversion 50%

Units started into production during the month 22,000

Work in process, ending:

Units in process 300

Percent complete with respect to materials 80%

Percent complete with respect to conversion 70%

Required:

Using the FIFO method, determine the equivalent units of production for materials and

conversion costs.