8-173
150.
Vacumatic, Inc. uses the FIFO method in its process costing system. The following data
concern the operations of the company’s first processing department – Assembly – for a
recent month.
Work-in-process, beginning:
Units in process
700
Percent complete with respect to
materials
50%
Percent complete with respect to
conversion
10%
Costs in the beginning inventory:
Materials cost
$595
Conversion cost
$2,093
Units started into production during the
month
14,000
Units completed and transferred out
14,600
Costs added to production during the
month:
Materials cost
$21,465
Conversion cost
$440,618
Work-in-process, ending:
Units in process
100
Percent complete with respect to
materials
60%
Percent complete with respect to
conversion
60%
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.
8-174
8-175
8-177
151.
Emerson, Inc. uses the FIFO method in its process costing system. The following data
concern the operations of the company’s first processing department – Mixing – for a
recent month.
Work-in-process, beginning:
Units in process
500
Percent complete with respect to
materials
70%
Percent complete with respect to
conversion
30%
Costs in the beginning inventory:
Materials cost
$2,240
Conversion cost
$4,365
Units started into production during the
month
16,000
Units completed and transferred out
16,000
Costs added to production during the
month:
Materials cost
$98,580
Conversion cost
$468,930
Work-in-process, ending:
Units in process
500
Percent complete with respect to
materials
50%
Percent complete with respect to
conversion
20%
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.
8-178
d. Determine the cost of units transferred out of the department during the month.
FIFO method:
8-181
152.
Hsu Corporation uses the FIFO method in its process costing system. The following data
concern the company’s Grinding Department for the month of August.
Cost in beginning work-in-process
inventory
$1,090
Units started and completed this month
2,670
Materials
Conversion
Cost per equivalent unit
$17.80
$34.50
Equivalent units required
to complete the units in
beginning work-in–
process inventory
180
160
Equivalent units in ending
work-in-process
inventory
120
99
Cost to complete these units:
8-183
153.
The following data has been provided by Radiotronics Inc., a company that uses the FIFO
method in its process costing system. The data concern the company’s Wiring Department
for the month of March.
Cost in beginning work-in-process
inventory
$2,260
Units started and completed this month
4,650
Materials
Conversion
Cost per equivalent unit
$33.30
$21.20
Equivalent units required
to complete the units in
beginning work-in–
process inventory
300
230
Equivalent units in ending
work-in-process
inventory
380
297
Cost to complete these units:
