Chapter 04 – Appendix A FIFO Method
28. Ozogus Company uses the FIFO method in its process costing system. Operating data for
the Brazing Department for the month of November appear below:
What were the equivalent units for conversion costs in the Brazing Department for
November?
Chapter 04 – Appendix A FIFO Method
29. Severn Company uses the FIFO method in its process costing system. The following data
were taken from the accounting records of the company for last month:
The cost of the units in the ending Work in Process inventory is:
Chapter 04 – Appendix A FIFO Method
30. Tepla Corporation uses the FIFO method in its process costing system. Operating data for
the Curing Department for the month of March appear below:
According to the company’s records, the conversion cost in beginning work in process
inventory was $40,608 at the beginning of March. The cost per equivalent unit for conversion
costs for March was $9.30.
How much conversion cost would be assigned to the units completed and transferred out of
the department during March?
Chapter 04 – Appendix A FIFO Method
Chapter 04 – Appendix A FIFO Method
31. In October, one of the processing departments at Schones Corporation had beginning
work in process inventory of $26,000 and ending work in process inventory of $17,000.
During the month, $279,000 of costs were added to production and the cost of units
transferred out from the department was $288,000. 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:
Chapter 04 – Appendix A FIFO Method
4A-26
32. In November, one of the processing departments at Ijames Corporation had ending work
in process inventory of $26,000. During the month, $426,000 of costs were added to
production and the cost of units transferred out from the department was $436,000. 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:
Zippy Company has a process costing system. Information about units processed and
processing costs incurred during a recent month in the Refining Department follow:
The beginning work in process inventory had $10,946 of processing cost attached to it at the
beginning of the month. During the month, the Department incurred an additional $289,954 in
processing cost.
Chapter 04 – Appendix A FIFO Method
33. Assuming that the company uses the weighted-average method, what are the equivalent
units for processing costs for the Department for the month?
Chapter 04 – Appendix A FIFO Method
34. Assuming that the company uses the weighted-average method, what is the cost per
equivalent unit for processing for the month?
Chapter 04 – Appendix A FIFO Method
35. Assuming that the company uses the FIFO method, what are the equivalent units for
processing costs for the Department for the month?
Chapter 04 – Appendix A FIFO Method
4A-30
36. Assuming that the company uses the FIFO method, what is the cost per equivalent unit of
production for processing for the month?
Nyman Company successfully switched to a lean production system at the beginning of
March. Therefore, as shown by the summary below, there were no work in process
inventories on hand at the end of the month.
Chapter 04 – Appendix A FIFO Method
37. If Nyman Company uses the FIFO cost method, the March equivalent units for conversion
would be:
Chapter 04 – Appendix A FIFO Method
38. If Nyman Company uses the weighted-average cost method, the March equivalent units
for materials would be:
Chapter 04 – Appendix A FIFO Method
4A-33
39. If Nyman continues to successfully employ lean production and starts 140,000 units into
production during April (the next month), the April equivalent units for conversion costs
using the weighted-average method would be:
The activity in Nolan Company’s Blending Department for the month of April is given
below:
All materials are added at the beginning of processing in the Blending Department.
Chapter 04 – Appendix A FIFO Method
40. The equivalent units for material for the month, using the FIFO method, are:
Chapter 04 – Appendix A FIFO Method
41. The equivalent units for labor and overhead for the month, using the FIFO method, are:
Chapter 04 – Appendix A FIFO Method
42. The equivalent units for material for the month, using the weighted-average method, are:
Chapter 04 – Appendix A FIFO Method
4A-37
43. The equivalent units for labor and overhead for the month, using the weighted-average
method, are:
Wilson Company has a process costing system. The Assembly Department had the following
costs for May:
Chapter 04 – Appendix A FIFO Method
44. Assume that Wilson uses the FIFO method, and that for May the company computed
16,000 equivalent units for materials. The cost per equivalent unit for materials for the month
would have been:
Chapter 04 – Appendix A FIFO Method
45. Assume that Wilson uses the weighted-average method and that for May the company
computed 20,000 equivalent units for labor and overhead. The cost per equivalent unit for
labor and overhead for the month would have been:
Chapter 04 – Appendix A FIFO Method
4A-40
Morvan Corporation uses the FIFO method in its process costing system. Data concerning the
first processing department for the most recent month are listed below:
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.