Equivalent units based on the FIFO costing
method
58,000
56,500
Units completed—55,000
Units in ending work in process—5,000
Direct materials are added at the beginning of the process. Beginning work in process is 40 percent
complete as to conversion costs; ending work in process inventory is 60 percent complete. The cost of
ending work in process inventory totaled
a.
$7,750.
b.
$4,650.
c.
$5,500.
d.
$6,250.
49. Natasha Corporation’s Shaping Department had no beginning inventory and completed and transferred
to finished goods 920 units during May. Ending inventory for May contained 80 units that were 30
percent complete as to conversion costs and 100 percent complete as to direct materials costs. The
charges to the Shaping Department during May were $3,776 for conversion costs and $2,500 for direct
materials costs. Compute the cost of work transferred out if Natasha Corporation uses the FIFO
costing method.
a.
$6,180
b.
$5,980
c.
$5,774
d.
$6,118
50. The Bakersfield Company has the following information available:
Costs from Beginning
Inventory
Direct materials
$3,650
Conversion costs
9,120
At the beginning of the period, there were 800 units in process that were 60 percent complete as to
conversion costs and 100 percent complete as to direct materials costs. During the current period,
5,800 units were started and completed. Ending inventory contained 400 units that were 60 percent
complete as to conversion costs and 100 percent complete as to direct materials costs. (Assume that the
company uses the FIFO process costing method.)
The equivalent units of production for direct materials and conversion costs, respectively, were
a.
6,200 for direct materials and 6,360 for conversion costs.
b.
5,400 for direct materials and 6,520 for conversion costs.
c.
6,200 for direct materials and 5,960 for conversion costs.
d.
7,000 for direct materials and 6,520 for conversion costs.
51. The Bakersfield Company has the following information available:
Costs from Beginning
Inventory
Direct materials
$3,650
Conversion costs
9,120
At the beginning of the period, there were 800 units in process that were 60 percent complete as to
conversion costs and 100 percent complete as to direct materials costs. During the current period,
5,800 units were started and completed. Ending inventory contained 400 units that were 60 percent
complete as to conversion costs and 100 percent complete as to direct materials costs. (Assume that the
company uses the FIFO process costing method.)
The cost of completing a unit during the current period was
a.
$30.12.
b.
$27.60.
c.
$28.18.
d.
$24.96.
52. The total costs that will be transferred into the Finished Goods Inventory account during the current
period are
a.
$144,768.
b.
$180,050.
c.
$164,736.
d.
$160,080.
53. Information for the current month for the Polishing Department is shown below.
Direct Materials
Conversion Costs
Beginning work in process inventory
$8,100
$10,525
Current month’s costs
$31,240
$56,240
Equivalent units based on the FIFO costing
method
71,000
74,000
Units completed—69,000
Units in ending work in process inventory—6,000
Direct materials are added at the beginning of the process. Beginning work in process is 30 percent
complete as to conversion costs; ending work in process inventory is 80 percent complete. Determine
the cost of ending work in process inventory.
a.
$7,200
b.
$3,552
c.
$5,760
d.
$6,288
54. Weston Company uses the FIFO 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 percent complete with respect to conversion costs. The conversion
costs in the beginning work in process inventory were $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 percent complete with respect to conversion costs.
A total of $284,160 in conversion costs were incurred in the department during the month. What
would be the cost per equivalent unit for conversion costs for the month on the department’s process
cost report? (Round to three decimal places.)
a.
$5.550
b.
$4.608
c.
$5.800
d.
$5.167
55. Equivalent production is also called
a.
conversion costs.
b.
completed work cell unit.
c.
equivalent units.
d.
percentage-of-completion.
56. Which method assumes that all units in beginning work in process (WIP) are completed in the current
period?
a.
LIFO
b.
Average cost
c.
FIFO
d.
Direct
57. Use the following data from a company using a process costing system to answer the question below.
Beginning Work in Process Inventory on June 1:
2,000 units—100 percent complete as to direct materials
80 percent complete as to conversion
costs
Units Started During June:
12,800 units
Ending Work in Process Inventory on June 30:
2,400 units—100 percent complete as to direct materials
40 percent complete as to conversion
costs
The company uses average process costing method.
Units completed and transferred out of the department during the month totaled
a.
12,800.
b.
12,400.
c.
14,800.
d.
10,400.
58. Use the following data from a company using a process costing system to answer the question below.
Beginning Work in Process Inventory on June 1:
1,000 units—100 percent complete as to direct materials
80 percent complete as to conversion
costs
Units Started During June:
6,400 units
Ending Work in Process Inventory on June 30:
1,200 units—100 percent complete as to direct materials
40 percent complete as to conversion
costs
The company uses average process costing method.
Equivalent units for direct materials during the month totaled
a.
6,400.
b.
8,600.
c.
6,600.
d.
7,400.
59. Use the following data from a company using a process costing system to answer the question below.
Beginning Work in Process Inventory on June 1:
1,000 units—100 percent complete as to direct materials
80 percent complete as to conversion
costs
Units Started During June:
6,400 units
Ending Work in Process Inventory on June 30:
1,200 units—100 percent complete as to direct materials
40 percent complete as to conversion
costs
The company uses average process costing method.
Equivalent units for conversion costs during the month totaled
a.
7,920.
b.
7,680.
c.
6,680.
d.
5,880.
60. The Taylor Company uses a process costing system. Assume that direct materials are added at the
beginning of the period and that direct labor and overhead are added continuously throughout the
process. The company uses the average costing method. The following data are available for one of its
accounting periods:
Units
Beginning work in process
26,000
(70 percent complete for
conversion costs)
Units started
180,000
Units transferred out
191,000
Ending work in process
15,000
(60 percent complete for
conversion costs)
Equivalent units for direct materials are
a.
180,000.
b.
206,000.
c.
176,000.
d.
191,000.
61. The Taylor Company uses a process costing system. Assume that direct materials are added at the
beginning of the period and that direct labor and overhead are added continuously throughout the
process. The company uses the average costing method. The following data are available for one of its
accounting periods:
Units
Beginning work in process
26,000
(70 percent complete for
conversion costs)
Units started
180,000
Units transferred out
191,000
Ending work in process
15,000
(60 percent complete for
conversion costs)
Equivalent units for conversion costs are
a.
207,800.
b.
192,200.
c.
181,800.
d.
200,000.
62. The Taylor Company uses a process costing system. Assume that direct materials are added at the
beginning of the period and that direct labor and overhead are added continuously throughout the
process. The company uses the average costing method. The following data are available for one of its
accounting periods:
Units
Beginning work in process
26,000
(70 percent complete for
conversion costs)
Units started
180,000
Units transferred out
191,000
Ending work in process
15,000
(60 percent complete for
conversion costs)
Assume that you have calculated a direct materials cost per unit of $5 and a conversion cost per unit of
$8. Under this assumption, the ending balance for Work in Process Inventory would be
a.
$147,000.
b.
$165,000.
c.
$123,000.
d.
$195,000.
SHORT ANSWER
1. Jackson Electronics, Inc., manufactures a variety of microelectronic component parts and utilizes a
process costing system. The following information was provided by the accounting department as of
July 31, 20xx:
a. Units started during the month of July totaled 118,200.
b. Units partially complete as of July 31 equaled 7,400.
c. Ending work in process inventory as of July 31, 20×8, was 70 percent complete.
d. Direct materials are added at the beginning of the process, and conversion costs are incurred
uniformly throughout the process.
e. No units were in process on July 1, 20xx.
Using the information provided, compute the equivalent units of production for direct materials and
conversion costs for July using the FIFO costing method.
2. Trunkey Products, Inc., uses a process costing system and has just completed production for the month
of November 20xx. The following production data were obtained from the accounting records:
a. Units in beginning inventory totaled 6,800 and were 30 percent complete as of November 1 (all
direct materials were added to these products in the preceding month).
b. During the period, 156,200 units were started.
c. 19,200 units were partially completed as of November 30, 20xx.
d. Ending work in process inventory was 40 percent complete at month end.
From the data given, compute the equivalent units of production for direct materials and conversion
costs for the month ended November 30, 20xx, assuming a FIFO flow of costs.
3. Use the following information to perform the calculations requested below, assuming that the FIFO
costing approach to a process costing system is being used.
Beginning work in process inventory: 6,000 units, 100 percent complete as to direct materials, 75
percent complete as to conversion costs
Ending work in process inventory: 18,000 units, 100 percent complete as to direct materials, 65
percent complete as to conversion costs
Units started during the month: 44,000
a. Calculate units started and completed during the month.
b. Calculate units to be accounted for during the month.
c. Calculate equivalent units for conversion costs.
d. Calculate equivalent units for direct materials.
4. Use the following information to perform the calculations requested below, assuming that the FIFO
costing approach to a process costing system is being used.
Beginning work in process inventory: 16,000 units, 100 percent complete as to direct materials, 85
percent complete as to conversion costs
Ending work in process inventory: 36,000 units, 100 percent complete as to direct materials, 70
percent complete as to conversion costs
Units started during the month: 59,000
a. Calculate units to be accounted for during the month.
b. Calculate units started and completed during the month.
c. Calculate equivalent units for direct materials.
d. Calculate equivalent units for conversion costs.
5. Bakersfield Company manufactures a variety of chips and utilizes a process costing system. The
following information was provided by the accounting department as of May 31, 20xx:
a. Units started during the month of May totaled 35,000.
b. Units partially complete as of May 31 equaled 8,400.
c. Ending work in process inventory as of May 31, 20xx, was 75 percent complete.
d. Direct materials are added at the beginning of the process, and conversion costs are incurred
uniformly throughout the process.
e. No units were in process on May 1, 20xx.
Using the information provided, compute the equivalent units of production for direct materials and
conversion costs for the month ended May 31, 20xx, assuming a FIFO costing flow.
6. Blackwell Corporation uses a process costing system and has just completed production for the month
of December 20xx. The following production data were obtained from the accounting records:
a. Units in beginning inventory totaled 9,000 and were 80 percent complete as of December 1 (all
direct materials were added to these products in the preceding month).
b. During the period, 216,000 units were started.
c. 17,400 units were partially completed as of December 31, 20xx.
d. Ending work in process inventory was 100 percent complete with respect to direct materials and 70
percent complete with respect to conversion costs at month end.
Using the information provided, compute the equivalent units of production for direct materials and
conversion costs for the month ended December 31, 20xx, assuming a FIFO costing flow.
7. Production has just been completed for January 20xx by Colombo, Inc. The company utilizes a process
costing system, and the following accounting and operating information was obtained from company
records:
a. Beginning work in process inventory consisted of units totaling 8,200 that were 60 percent complete
as of January 1, 20xx (all direct materials were added to the units at the beginning of the production
process that took place in the preceding month).
b. 260,000 units were started during January.
c. At the end of the month, 22,400 units were in work in process inventory and were 100 percent
complete with respect to direct materials and 40 percent complete with respect to conversion costs.
From the figures shown above, and assuming a FIFO costing flow, prepare in good form a schedule of
equivalent production for the month ended January 31, 20xx.