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Exam 4: Process Costing

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Question 21

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The following data has been provided by Klemm Inc., a company that uses the FIFO method in its process costing system. The data concern the company's Shaping Department for the month of March. Required: Determine the cost of ending work in process inventory and the cost of the units transferred out of the department during March using the FIFO method.

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Question 22

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In computing the cost per equivalent unit, costs in the beginning work in process inventory are kept separate from current period costs when the FIFO method is used.

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Question 23

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Winkle Corporation uses the FIFO method in its process costing system. Beginning inventory in the mixing processing center consisted of 5,000 units, 90% complete with respect to conversion costs. Ending work in process inventory consisted of 2,000 units, 60% complete with respect to conversion costs. If 10,000 units were transferred to the next processing center during the period, the equivalent units for conversion costs would be:

Darver 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. 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. d. Determine the cost of units transferred out of the department during the month.

Marten Corporation uses the FIFO method in its process costing system. Operating data for the Casting Department for the month of September appear below: 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.)

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:

Information about units processed and processing costs incurred during a recent month in the Refining Department of a manufacturing company follow: 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?

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:

Under which of the following conditions will the FIFO method of process costing result in the same amount of cost being transferred to the next department as the weighted-average method?

In the cost reconciliation report under the FIFO method, the costs accounted for equals the cost of ending work in process inventory plus the cost of units transferred out.

Sharp Company has a process costing system. The following data relate to the company's Mixing Department for a recent month: 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.

Reid Corporation uses a process costing system in which units go through several departments. In the Cutting Department for June, units in the beginning work in process inventory were 80% complete with respect to conversion costs. Units in the ending work in process inventory were 25% complete with respect to conversion costs. Other data for the department for June are as follows: Assuming that the company uses the weighted-average method, the cost per equivalent unit for conversion costs for June is closest to:

In the cost reconciliation report under the FIFO method, the costs accounted for equals the cost of beginning work in process inventory plus the cost of units transferred out.

Hayek Corporation uses the FIFO method in its process costing. The following data concern the company's Mixing Department for the month of August. Required: Compute the cost per equivalent unit for materials and conversion for the Mixing Department for August using the FIFO method.

Tarten 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 $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?

Oxyrom Corporation 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?

Reid Corporation uses a process costing system in which units go through several departments. In the Cutting Department for June, units in the beginning work in process inventory were 80% complete with respect to conversion costs. Units in the ending work in process inventory were 25% complete with respect to conversion costs. Other data for the department for June are as follows: Assuming that the company uses the FIFO cost method, the cost per equivalent unit for conversion costs for June is closest to:

Muzyka 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. What are the equivalent units for conversion costs for the month in the first processing department?

The following data relate to the Blending Department of Tru-Color Paint Corporation for a recent month: All materials are added prior to the beginning of work in the Blending Department. Assuming that Tru-Color Paint Corporation uses the weighted-average method, the equivalent units for conversion costs would be:

In October, one of the processing departments at Moake Corporation had beginning work in process inventory of $21,000 and ending work in process inventory of $35,000. During the month, $247,000 of costs were added to production. The company uses the FIFO method in its process costing system. Required: Construct a cost reconciliation report for the department for the month of October.