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Chapter 04
4S-1
Copyright © 2016 McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior written consent of
McGraw-Hill Education.
Supplement: Process Costing Using the FIFO Method
True / False Questions
1. The equivalent units of production will be the same under the weighted-average and the
FIFO method if there is no ending work in process inventory.
True False
2. Any difference in the equivalent units calculated under the weighted-average and the FIFO
methods is due to the units in the beginning work in process inventory.
True False
3. There is no difference in the unit costs computed under the weighted-average and FIFO
methods of process costing if there are no ending work in process inventories.
True False
4. The equivalent units of production for a department using the FIFO process costing method
is equal to the number of units completed plus the equivalent units in the ending inventory
less the equivalent units in the beginning inventory.
True False
5. 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.
True False
6. If the FIFO cost method is used in a process costing system, costs in the beginning inventory
are kept separate from current period costs.
True False
4S-2
7. A major advantage of the FIFO method is that it allows managers to judge the performance of
the current period independently of the performance of the prior period.
True False
8. In the cost reconciliation report under the FIFO method, the costs to be accounted for equals
the cost of ending work in process inventory plus the cost of units transferred out.
True False
9. In the cost reconciliation report under the FIFO method, the costs to be accounted for equals
the cost of beginning work in process inventory plus the cost of units transferred out.
True False
10. 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.
True False
11. 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.
True False
Multiple Choice Questions
4S-3
12. 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?
A. When the beginning and ending inventories are each fifty percent complete.
B. When there is no beginning inventory.
C. When there is no ending inventory.
.
D. When units in the beginning inventory are all completed and transferred at the same time.
13. Under the FIFO method, unit costs would:
A. result from costs in the beginning inventory being added in with current period costs.
B. contain some element of cost from the prior period.
C. not contain some elements of cost from the prior period.
D. not include costs incurred to complete beginning inventory.
4S-4
14.
Laurie Corporation uses the FIFO method in its process costing system. Department A is the
first stage of Laurie Corporation's production process. The following information is available
for conversion costs for the month of May for Department A:
Units
Work in process, beginning (25% complete with respect to conversion costs) 8,000
Started in May 40,000
Completed in May and transferred to Department B 38,000
Work in process, ending (60% complete with respect to conversion costs) 10,000
The equivalent units of production for conversion costs for the month are:
A. 42,000 units
B. 38,000 units
C. 44,000 units
D. 36,000 units
4S-5
15. Garson Corporation uses the FIFO method in its process costing system. The Grinding
Department started the month with 18,000 units in its beginning work in process inventory
that were 10% complete with respect to conversion costs. An additional 98,000 units were
transferred in from the prior department during the month to begin processing in the Grinding
Department. During the month 115,000 units were completed in the Grinding Department and
transferred to the next processing department. There were 1,000 units in the ending work in
process inventory of the Grinding Department that were 20% complete with respect to
conversion costs.
What were the equivalent units for conversion costs in the Grinding Department for the
month?
A. 81,000
B. 115,200
C. 115,000
D. 113,400
16. 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:
A. 13,200 units
B. 6,700 units
C. 10,000 units
D. 12,000 units
4S-6
17.
Karmen Corporation uses the FIFO method in its process costing system. Operating data for
the Enameling Department for the month of May appear below:
Percent Complete with Respect to

Units
Conversion
Beginning work in process inventory 2,400 40%
Transferred in from the prior department

87,000
during May
Ending work in process inventory 8,600 60%
What were the equivalent units for conversion costs in the Enameling Department for May?
A. 85,000
B. 85,960
C. 93,200
D. 80,800
18. Carson Corporation uses the FIFO method in its process costing system. The Assembly
Department started the month with 6,000 units in its beginning work in process inventory that
were 20% complete with respect to conversion costs. An additional 74,000 units were
transferred in from the prior department during the month to begin processing in the
Assembly Department. There were 8,000 units in the ending work in process inventory of the
Assembly Department that were 60% complete with respect to conversion costs.
What were the equivalent units for conversion costs in the Assembly Department for the
month?
A. 72,000
B. 75,600
C. 76,000
D. 76,800
4S-7
19.
Oxyrom Corporation uses the FIFO method in its process costing system. Operating data for
the Brazing Department for the month of November appear below:
Percent Complete with Respect

Units
to Conversion
Transferred in from the prior department during

46,700
November
Completed and transferred to the next

43,200
department during November
What were the equivalent units for conversion costs in the Brazing Department for
November?
A. 49,040
B. 50,200
C. 43,200
D. 48,280
20. Salter Corporation uses the FIFO method in its process costing system. The company
reported 25,000 equivalent units for materials last month. The company's beginning work in
process inventory consisted of 6,000 units, 40% complete with respect to materials. The
ending work in process inventory consisted of 4,000 units, 70% complete with respect to
materials. The number of units started during the month was:
A. 25,400 units
B. 23,400 units
C. 22,600 units
D. 24,600 units
4S-8
21.
Qart Corporation uses the FIFO method in its process costing system. Operating data for the
Cutting Department for the month of March appear below:
Percent Complete with

Units
Respect to Conversion
Beginning work in process

4,500 20%
inventory
Transferred in from the prior

74,000
department during March
Completed and transferred to

the next department during 74,500
March
Ending work in process

4,000 60%
inventory
According to the company's records, the conversion cost in beginning work in process
inventory was $1,656 at the beginning of March. Additional conversion costs of $129,960
were incurred in the department during the month.
The cost per equivalent unit for conversion costs for March is closest to:
A. $1.710
B. $1.677
C. $1.756
D. $1.840
4S-9
22. Index Corporation uses the FIFO method in its process costing system. The first processing
department, the Forming Department, started the month with 17,000 units in its beginning
work in process inventory that were 10% complete with respect to conversion costs. The
conversion cost in this beginning work in process inventory was $9,010. An additional 76,000
units were started into production during the month and 83,000 units were completed and
transferred to the next processing department. There were 10,000 units in the ending work in
process inventory of the Forming Department that were 70% complete with respect to
conversion costs. A total of $445,915 in conversion costs were incurred in the department
during the month.
The cost per equivalent unit for conversion costs for the month is closest to:
A. $5.050
B. $5.300
C. $5.867
D. $5.150
4S-10
23.
Marten Corporation uses the FIFO method in its process costing system. Operating data for
the Casting Department for the month of September appear below:

Units
Conversion

74,000
during September
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.)
A. $5.498
B. $5.779
C. $5.620
D. $5.500
4S-11
24. Ebis Corporation uses the FIFO method in its process costing system. The first processing
department, the Welding Department, started the month with 13,000 units in its beginning
conversion cost in this beginning work in process inventory was $12,610. An additional 89,000
units were started into production during the month. There were 22,000 units in the ending
work in process inventory of the Welding Department that were 30% complete with respect to
conversion costs. A total of $806,085 in conversion costs were incurred in the department
during the month.
The cost per equivalent unit for conversion costs is closest to:
A. $8.026
B. $9.700
C. $9.057
D. $9.450
25.
Overhill Corporation uses the FIFO method in its process costing system. In the Cutting
Department in June, units were 80% complete with respect to conversion in the beginning
work in process inventory and 25% complete with respect to conversion in the ending work in
process inventory. Other data for the department for June follow:
Conversion
Units
Cost
Beginning work in process inventory 20,000 $40,000
Units started into production, and costs incurred during the month 150,000 $186,000
Units completed and transferred out 130,000
The cost per equivalent unit for conversion cost is closest to:
A. $1.48
B. $1.50
C. $1.16
D. $1.82
4S-12
26. Williams Corporation uses the FIFO method in its process costing system. The beginning
work in process inventory in a particular department consisted of 10,000 units, 100%
complete with respect to materials and 60% with respect to conversion costs. The total cost
in the beginning work in process inventory was $48,200. During the month, 25,000 units were
transferred out of the department. The costs per equivalent unit were computed to be $3.10
for materials and $4.50 for conversion costs. The total cost of the units completed and
transferred out of the department was:
A. $190,000
B. $189,200
C. $180,200
D. $132,000
4S-13
27.
Tarten Corporation uses the FIFO method in its process costing system. Operating data for
the Curing Department for the month of March appear below:

Units
Conversion

57,000
during March

65,000
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?
A. $525,530
B. $592,040
C. $533,090
D. $533,000
28. Steven Corporation uses the FIFO method in its process costing system. Department A's
beginning work in process inventory consisted of 15,000 units, 100% complete with respect to
materials and 40% complete with respect to conversion costs. The total cost of this inventory
was $31,000. A total of 40,000 units were transferred out during the month. The costs per
equivalent unit were computed to be $1.30 for materials and $2.20 for conversion costs. The
cost of the units completed and transferred out was:
A. $140,000
B. $138,300
C. $131,700
D. $118,500
4S-14
29.
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:
A. $890,000
B. $71,000
C. $463,000
D. $926,000
30. 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:
A. $526,000
B. $61,000
C. $548,000
D. $274,000
4S-15
31.
Information about units processed and processing costs incurred during a recent month in
the Refining Department of a manufacturing company follow:
Number of Percent Completion Conversion

Units Costs

11,000 35%
inventory
Units started into production 120,000
Units completed and transferred

114,000
out
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?
A. 119,100
B. 120,000
C. 114,000
D. 131,000
4S-16
32.

Units Costs

11,000 35%
inventory

114,000
out
A. $2.55
B. $2.53
C. $2.50
D. $2.44
4S-17
33.
Percent Completion Conversion

Number of Units
Costs

11,000 35%
inventory

114,000
out
Assuming that the company uses the FIFO method, what are the equivalent units for
conversion costs for the Blending Department for the month?
A. 119,100
B. 111,950
C. 115,250
D. 114,000
4S-18
34.

Units Costs

11,000 35%
inventory

114,000
out
Assuming that the company uses the FIFO method, what is the cost per equivalent unit for
conversion costs for the month in the Blending Department to the nearest cent?
A. $2.52
B. $2.55
C. $2.44
D. $2.59
4S-19
35.
The following data relate to the Blending Department of Tru-Color Paint Corporation for a
recent month:
Units Percent Complete Conversion
All materials are added prior to the beginning of work in the Blending Department.
Assuming that Tru-Color Paint Corporation uses the FIFO method, the equivalent units for
materials would be:
A. 42,600
B. 45,000
C. 53,000
D. 46,000
4S-20
36.
recent month:
Assuming Tru-Color Paint Corporation uses the FIFO method, the equivalent units for
conversion costs would be:
A. 42,600
B. 44,400
C. 46,000
D. 54,000
4S-21
37.
recent month:
Assuming that Tru-Color Paint Corporation uses the weighted-average method, the
equivalent units for materials would be:
A. 48,000
B. 46,000
C. 54,000
D. 45,000
4S-22
38.
recent month:
equivalent units for conversion costs would be:
A. 44,400
B. 42,600
C. 46,000
D. 48,000
4S-23
39.
Higgins Labs Inc., uses a process costing system. The following data are available for one
department for October:
Percent
Complete
Units Materials Conversion
Work in process, beginning 10,000 60% 30%
Work in process, ending 5,000 80% 70%
The department started 45,000 units into production during the month and completed and
transferred 50,000 units to the next department.
Assuming the weighted-average method is used, the equivalent units for material for
October would be:
A. 54,000 units
B. 50,000 units
C. 48,000 units
D. 44,000 units
4S-24
40.
Percent
Complete
Assuming the weighted-average method is used, the equivalent units for conversion for
October would be:
A. 55,000 units
B. 50,000 units
C. 53,500 units
D. 56,500 units
4S-25
41.
Percent
Complete
Assuming the FIFO method is used, the equivalent units for material for October would be:
A. 55,000 units
B. 46,500 units
C. 44,500 units
D. 48,000 units
4S-26
42.
Percent
Complete
Assuming the FIFO method is used, the equivalent units for conversion for October would
be:
A. 50,500 units
B. 50,000 units
C. 44,500 units
D. 48,000 units
4S-27
43.
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:
Conversion
Units
Cost
Work in process inventory on June 1 15,000 $50,200
Conversion costs incurred during June $175,700
Units completed and transferred to the next department during

130,000
June
Assuming that the company uses the FIFO cost method, the cost per equivalent unit for
conversion costs for June is closest to:
A. $1.80
B. $1.40
C. $1.64
D. $1.35
4S-28
44.
Conversion
Units
Cost

130,000
June
Assuming that the company uses the weighted-average method, the cost per equivalent unit
for conversion costs for June is closest to:
A. $1.64
B. $1.56
C. $1.74
D. $1.48
4S-29
45.
The following information was obtained from the records of the first processing department
of Bapst Corporation for the month of May. The company uses the FIFO method in its
process costing system.
Units Labor and Overhead Percent Complete
Work in process inventory, May 1 3,000 30%
Started into production during the month 20,000
All materials are added at the beginning of the manufacturing process.
The equivalent units for labor and overhead for the month is:
A. 17,600 units
B. 18,500 units
C. 19,700 units
D. 21,600 units
4S-30
46.
The following information was obtained from the records of the first processing department
of Bapst Corporation for the month of May. The company uses the FIFO method in its
process costing system.
Started into production during the month 20,000
The equivalent units for materials for the month is:
A. 21,600 units
B. 22,500 units
C. 16,000 units
D. 20,000 units
4S-31
47.
Marlan Manufacturing produces a product that passes through two processing departments.
The units from the Molding Department are completed in the Assembly Department. The
activity in the Assembly Department for the current month is presented below. Marlan uses
the FIFO method in its process costing system.
Units in beginning Work In Process inventory

8,000
(materials 0% complete; conversion 25% complete)
Units transferred in from the Molding Department during the month 42,000
Units completed and transferred to Finished Goods 38,000
Units in ending Work In Process inventory

12,000
The equivalent units (with respect to the Molding Department's costs) transferred from the
Molding Department to the Assembly during the month were:
A. 30,000 units
B. 38,000 units
C. 40,800 units
D. 42,000 units
4S-32
48.

8,000

12,000
The equivalent units for materials for the Assembly Department during the month were:
A. 30,000 units
B. 38,000 units
C. 40,800 units
D. 42,000 units
4S-33
49.

8,000

12,000
The equivalent units for conversion costs for the Assembly Department during the month
were:
A. 36,800 units
B. 38,000 units
C. 40,800 units
D. 42,000 units
4S-34
50.
Ozogoz 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 500
Materials costs $8,900
Conversion costs $3,900
Percent complete with respect to materials 85%
Percent complete with respect to conversion 30%
Units started into production during the month 9,800
Units transferred to the next department during

9,100
the month
Materials costs added during the month $176,500
Conversion costs added during the month $223,400
Ending work in process inventory:
Units in ending work in process inventory 1,200
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 conversion costs for the month in the first processing
department?
A. 9,250
B. 10,300
C. 300
D. 8,600
4S-35
4S-36
51.
Ozogoz Corporation uses the FIFO method in its process costing system. Data concerning the

9,100
the month
The cost per equivalent unit for materials for the month in the first processing department is
closest to:
A. $18.67
B. $20.94
C. $19.40
D. $17.14
4S-37
52.
Quilling Corporation uses the FIFO method in its process costing system. Data concerning the
How many units were started AND completed during the month in the first processing
department?
A. 7,300
B. 8,700
C. 8,100
D. 6,700
4S-38
53.
Quilling Corporation uses the FIFO method in its process costing system. Data concerning the
The cost per equivalent unit for conversion costs for the first department for the month is
closest to:
A. $33.72
B. $34.74
C. $36.67
D. $35.41
4S-39
54.
Nouri Corporation uses the FIFO method in its process costing system. Data concerning the
Conversion costs $700

6,600
the month
What are the equivalent units for materials for the month in the first processing
department?
A. 850
B. 7,240
C. 7,600
D. 6,300
4S-40
55.
Nouri Corporation uses the FIFO method in its process costing system. Data concerning the
first processing department for the most recent month are listsed below:

6,600
the month
closest to:
A. $14.48
B. $14.82
C. $15.20
D. $15.56
4S-41
56.
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:

4,800
the month
Units in ending work in process inventory 800
select the answer that is the closest to the answer you computed.
department?
A. 4,500
B. 5,600
C. 400
D. 4,945
4S-42
57.

4,800
the month
department?
A. 5,600
B. 5,060
C. 4,500
D. 320
4S-43
58.

4,800
the month
The cost per equivalent unit for materials for the month in the first processing department is
closest to:
A. $23.14
B. $18.91
C. $21.42
D. $22.06
4S-44
59.

4,800
the month
closest to:
A. $44.51
B. $50.00
C. $46.92
D. $46.74
4S-45
60.

4,800
the month
The cost of a completed unit transferred out of the department is closest to:
A. $69.88
B. $75.56
C. $60.71
D. $65.92
4S-46
61.

4,800
the month
The total cost transferred from the first processing department to the next processing
department during the month is closest to:
A. $369,163
B. $317,192
C. $331,100
D. $340,000
4S-47
62.

4,800
the month
The cost of ending work in process inventory in the first processing department according to
the company's cost system is closest to:
A. $26,369
B. $22,808
C. $52,738
D. $21,095
4S-48
63.
Pushkin Corporation uses the FIFO method in its process costing system. Data concerning

7,900
the month
department?
A. 400
B. 8,700
C. 8,140
D. 7,700
4S-49
64.

7,900
the month
closest to:
A. $43.65
B. $41.57
C. $42.67
D. $43.33
4S-50
65.

7,900
the month
A. $505,800
B. $510,700
C. $541,932
D. $492,435
4S-51
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:
A. $270,000
B. $225,000
C. $252,000
D. $234,000
In the department's cost reconciliation report for April, the total cost accounted for would be:
A. $297,000
B. $594,000
C. $63,000
D. $567,000
Essay Questions
4S-52
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
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-53
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-54
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-55
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
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

8,400
department
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-56
72.
Voyer Corporation uses the FIFO method in its process costing. The following data pertain to
its Assembly Department for August.
Percent
Complete
Work in process, August 1 700 70% 30%
Units completed during August and transferred to the next

5,900
department
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-57
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
Work in process, ending:
Required:
Using the FIFO method, determine the equivalent units of production for materials and
conversion costs.
4S-58
74.
Darver Inc. uses the FIFO method in its process costing system. The following data concern
Costs in the beginning inventory:
Materials cost $376
Conversion cost $2,376
Units started into production during the

21,000
month
Costs added to production during the month:
Materials cost $93,645
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.
4S-59
c. Determine the cost of ending work in process inventory.
d. Determine the cost of units transferred out of the department during the month.
4S-60
75.
Easy 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.
Materials cost $594

26,000
month
Required:
4S-61
76.
Rauls Corporation uses the FIFO method in its process costing. The following data concern
the company's Assembly Department for the month of January.
Materials Conversion
Work in process, January 1 $14,798 $8,864
Cost added to production in the Assembly Department during

$93,922 $50,414
January
Equivalent units of production for January 3,020 2,770
Required:
Compute the costs per equivalent unit for the Assembly Department for January using the
FIFO method.
4S-62
77.
Hayek Corporation uses the FIFO method in its process costing. The following data concern
the company's Mixing Department for the month of August.
Work in process, August 1 $31,734 $30,320
Cost added to production in the Mixing Department during August $91,332 $81,864
Equivalent units of production for August 7,740 7,580
Required:
Compute the cost per equivalent unit for materials and conversion for the Mixing
Department for August using the FIFO method.
4S-63
78.
Mottai Corporation uses the FIFO method in its process costing system. The following data
concern the company's Assembly Department for the month of August.
Cost in beginning work in process inventory $4,410
Units started and completed this month 3,630
Cost per equivalent unit $34.20 $18.50
Equivalent units required to complete the units in beginning work in

320 110
process inventory
Equivalent units in ending work in process inventory 380 231
Required:
Determine the cost of ending work in process inventory and the cost of units transferred out
of the department during August using the FIFO method.
4S-64
79.
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.

190 160
process inventory
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.
4S-65
80.
In February, one of the processing departments at Mateus Corporation had beginning work in
month, $206,000 of costs were added to production and the cost of units transferred out from
the department was $196,000.The company uses the FIFO method in its process costing
system.
Required:
Construct a cost reconciliation report for the department for the month of February.
4S-66
81.
In December, one of the processing departments at Moshier Corporation had ending work in
process inventory of $24,000. During the month, $293,000 of costs were added to production
and the cost of units transferred out from the department was $297,000. The company uses
Required:
Construct a cost reconciliation report for the department for the month of December.
82. 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.
4S-67
Chapter 04 Supplement: Process Costing Using the FIFO Method
Answer Key
True / False Questions
1.
The equivalent units of production will be the same under the weighted-average and the
FIFO method if there is no ending work in process inventory.
FALSE
AACSB: Reflective Thinking

AICPA: BB Critical Thinking
AICPA: FN Measurement
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 04-02 Compute the equivalent units of production using the weighted-average method.
Learning Objective: 04S-06 Compute the equivalent units of production using the FIFO method.
Level of Difficulty: 3 Hard
Topic Area: Compute and Apply Costs
Topic Area: Equivalent Units - FIFO Method
4S-68
2.
Any difference in the equivalent units calculated under the weighted-average and the FIFO
methods is due to the units in the beginning work in process inventory.
TRUE

Blooms: Remember
Level of Difficulty: 1 Easy
3.
There is no difference in the unit costs computed under the weighted-average and FIFO
methods of process costing if there are no ending work in process inventories.
FALSE

Blooms: Understand
Learning Objective: 04-03 Compute the cost per equivalent unit using the weighted-average method.
Learning Objective: 04S-07 Compute the cost per equivalent unit using the FIFO method.
Topic Area: Cost Reconciliation Report
Topic Area: Cost per Equivalent Unit - FIFO Method
4S-69
4.
The equivalent units of production for a department using the FIFO process costing
method is equal to the number of units completed plus the equivalent units in the ending
inventory less the equivalent units in the beginning inventory.
TRUE

Blooms: Understand
Level of Difficulty: 2 Medium
5.
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.
TRUE

Blooms: Understand
4S-70
6.
If the FIFO cost method is used in a process costing system, costs in the beginning
inventory are kept separate from current period costs.
TRUE

Blooms: Remember
Learning Objective: 04S-08 Assign costs to units using the FIFO method.
Topic Area: Applying Costs - FIFO Method
7. A major advantage of the FIFO method is that it allows managers to judge the
performance of the current period independently of the performance of the prior period.
TRUE

Blooms: Understand
Learning Objective: 04S-09 Prepare a cost reconciliation report using the FIFO method.
Topic Area: Cost Reconciliation Report - FIFO Method
4S-71
8.
In the cost reconciliation report under the FIFO method, the costs to be accounted for
equals the cost of ending work in process inventory plus the cost of units transferred out.
FALSE

Blooms: Understand
9.
In the cost reconciliation report under the FIFO method, the costs to be accounted for
equals the cost of beginning work in process inventory plus the cost of units transferred
out.
FALSE

Blooms: Understand
4S-72
10.
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.
FALSE

Blooms: Understand
11.
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.
TRUE

Blooms: Understand
Multiple Choice Questions
4S-73
12. 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?
A. When the beginning and ending inventories are each fifty percent complete.
B. When there is no beginning inventory.
C. When there is no ending inventory.
.
D. When units in the beginning inventory are all completed and transferred at the same
time.

Blooms: Understand
Learning Objective: 04-04 Assign costs to units using the weighted-average method.
Source: CMA, adapted
Topic Area: Weighted-Average Method
4S-74
13. Under the FIFO method, unit costs would:
A. result from costs in the beginning inventory being added in

with current period costs.
B. contain some element of cost from the prior period.
C. not contain some elements of cost from the prior period.
D. not include costs incurred to complete beginning inventory.

Blooms: Understand
4S-75
4S-76
14.
Laurie Corporation uses the FIFO method in its process costing system. Department A is
the first stage of Laurie Corporation's production process. The following information is
available for conversion costs for the month of May for Department A:
Units
Work in process, beginning (25% complete with respect to conversion costs) 8,000
Started in May 40,000
Completed in May and transferred to Department B 38,000
Work in process, ending (60% complete with respect to conversion costs) 10,000
The equivalent units of production for conversion costs for the month are:
A. 42,000 units
B. 38,000 units
C. 44,000 units
D. 36,000 units
FIFO method
FIFO method equivalent units of production
Conversion
To complete beginning work in process

inventory:
Conversion: 8,000 units  (100% – 25%) 6,000
Units started and completed (38,000 – 8,000) 30,000
Conversion: 10,000 units  60% 6,000
Equivalent units of production 42,000
4S-77
AACSB: Analytical Thinking
Blooms: Apply
4S-78
15. Garson Corporation uses the FIFO method in its process costing system. The Grinding
Grinding Department. During the month 115,000 units were completed in the Grinding
Department and transferred to the next processing department. There were 1,000 units in
the ending work in process inventory of the Grinding Department that were 20% complete
with respect to conversion costs.
What were the equivalent units for conversion costs in the Grinding Department for the
month?
A. 81,000
B. 115,200
C. 115,000
D. 113,400
FIFO method
Conversion

inventory:
Units started and completed (38,000 – 8,000) 30,000
4S-79
Blooms: Apply
4S-80
16. 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:
A. 13,200 units
B. 6,700 units
C. 10,000 units
D. 12,000 units
FIFO method
Units started and completed during the period = Units completed during the period -
Units in beginning work in process inventory = 10,000 - 5,000 = 5,000
Conversion
To complete beginning work in process:
Conversion: 5,000 units  (100% – 90%) 500
Units started and completed 5,000
Ending work in process:

Blooms: Apply
4S-81
4S-82
17.
Karmen Corporation uses the FIFO method in its process costing system. Operating data
for the Enameling Department for the month of May appear below:

Units
Conversion

87,000
during May
What were the equivalent units for conversion costs in the Enameling Department for
May?
A. 85,000
B. 85,960
C. 93,200
D. 80,800
FIFO method
Units started and completed during the period = Units started into production during the
period - Units in ending work in process inventory = 87,000 - 8,600 = 78,400
Conversion
4S-83
Blooms: Apply
4S-84
18. Carson Corporation uses the FIFO method in its process costing system. The Assembly
Assembly Department. There were 8,000 units in the ending work in process inventory of
the Assembly Department that were 60% complete with respect to conversion costs.
What were the equivalent units for conversion costs in the Assembly Department for the
month?
A. 72,000
B. 75,600
C. 76,000
D. 76,800
FIFO method
Conversion
4S-85
Blooms: Apply
4S-86
4S-87
19.
Oxyrom Corporation uses the FIFO method in its process costing system. Operating data
for the Brazing Department for the month of November appear below:

Units
to Conversion

46,700
during November

43,200
department during November
What were the equivalent units for conversion costs in the Brazing Department for
November?
A. 49,040
B. 50,200
C. 43,200
D. 48,280
FIFO method
Conversion
4S-88

Blooms: Apply
4S-89
20. Salter Corporation uses the FIFO method in its process costing system. The company
reported 25,000 equivalent units for materials last month. The company's beginning work
in process inventory consisted of 6,000 units, 40% complete with respect to materials. The
ending work in process inventory consisted of 4,000 units, 70% complete with respect to
materials. The number of units started during the month was:
A. 25,400 units
B. 23,400 units
C. 22,600 units
D. 24,600 units
FIFO method
Materials

inventory:
Materials: 6,000 units  (100% – 40%) 3,600
Units started and completed X
Materials: 4,000 units  70% 2,800
3,600 + X + 2,800 = 25,000

X = 25,000 - 3,600 - 2,800 = 18,600
Units started and completed = Units started into production during the period - Units in
ending inventory
18,600 = Units started into production during the period - 4,000
Units started into production during the period = 18,600 + 4,000 = 22,600
4S-90
Blooms: Apply
4S-91
4S-92
21.
Qart Corporation uses the FIFO method in its process costing system. Operating data for
the Cutting Department for the month of March appear below:
Percent Complete with

Units
Respect to Conversion

4,500 20%
inventory
Transferred in from the prior

74,000
Completed and transferred to

the next department during 74,500
March
Ending work in process

4,000 60%
inventory
inventory was $1,656 at the beginning of March. Additional conversion costs of $129,960
were incurred in the department during the month.
The cost per equivalent unit for conversion costs for March is closest to:
A. $1.710
B. $1.677
C. $1.756
D. $1.840
FIFO method
Conversion
4S-93
Conversion
Cost added during the period (a) $129,960
Equivalent units of production (b) 76,000
Cost per equivalent unit (a)  (b) $1.71

Blooms: Apply
4S-94
4S-95
22. Index Corporation uses the FIFO method in its process costing system. The first
processing department, the Forming Department, started the month with 17,000 units in
its beginning work in process inventory that were 10% complete with respect to conversion
costs. The conversion cost in this beginning work in process inventory was $9,010. An
additional 76,000 units were started into production during the month and 83,000 units
were completed and transferred to the next processing department. There were 10,000
units in the ending work in process inventory of the Forming Department that were 70%
complete with respect to conversion costs. A total of $445,915 in conversion costs were
incurred in the department during the month.
The cost per equivalent unit for conversion costs for the month is closest to:
A. $5.050
B. $5.300
C. $5.867
D. $5.150
FIFO method
Conversion
Conversion
4S-96

Blooms: Apply
4S-97
4S-98
23.
Marten Corporation uses the FIFO method in its process costing system. Operating data
for the Casting Department for the month of September appear below:

Units
Conversion

74,000
during September
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.)
A. $5.498
B. $5.779
C. $5.620
D. $5.500
FIFO method
Conversion
4S-99
Conversion

Blooms: Apply
4S-100
4S-101
24.
Ebis Corporation uses the FIFO method in its process costing system. The first processing
department, the Welding Department, started the month with 13,000 units in its beginning
conversion cost in this beginning work in process inventory was $12,610. An additional
89,000 units were started into production during the month. There were 22,000 units in the
ending work in process inventory of the Welding Department that were 30% complete with
respect to conversion costs. A total of $806,085 in conversion costs were incurred in the
department during the month.
The cost per equivalent unit for conversion costs is closest to:
A. $8.026
B. $9.700
C. $9.057
D. $9.450
FIFO method
Conversion
Conversion
4S-102
Blooms: Apply
4S-103
4S-104
25.
Overhill Corporation uses the FIFO method in its process costing system. In the Cutting
Department in June, units were 80% complete with respect to conversion in the beginning
work in process inventory and 25% complete with respect to conversion in the ending work
in process inventory. Other data for the department for June follow:
Conversion
Units
Cost
Beginning work in process inventory 20,000 $40,000
Units started into production, and costs incurred during the

150,000 $186,000
month
The cost per equivalent unit for conversion cost is closest to:
A. $1.48
B. $1.50
C. $1.16
D. $1.82
FIFO method
Units started and completed = Units completed during the period - Units in beginning
inventory
Units started and completed = 130,000 - 20,000 = 110,000
ending inventory
110,000 = 150,000 - Units in ending inventory
Units in ending inventory = 150,000 - 110,000 = 40,000
Conversion
4S-105
inventory:
FIFO method cost per equivalent unit
Conversion

Blooms: Apply
4S-106
4S-107
26. Williams Corporation uses the FIFO method in its process costing system. The beginning
work in process inventory in a particular department consisted of 10,000 units, 100%
complete with respect to materials and 60% with respect to conversion costs. The total
cost in the beginning work in process inventory was $48,200. During the month, 25,000
units were transferred out of the department. The costs per equivalent unit were
computed to be $3.10 for materials and $4.50 for conversion costs. The total cost of the
units completed and transferred out of the department was:
A. $190,000
B. $189,200
C. $180,200
D. $132,000
FIFO method
To complete beginning work in process inventory:
Materials: 10,000 units  (100% – 100%) 0
Units started and completed (25,000 – 10,000) 15,000 15,000
Materials Conversion Total
Units transferred out:
Cost to complete beginning work in process inventory:
Equivalent units of production required to complete

0 4,000
the units in beginning inventory (a)
Cost per equivalent unit (b) $3.10 $4.50
Cost to complete the units in beginning inventory (a) 

$0 $18,000 18,000
(b)
Cost of units started and completed this period:
4S-108
Units started and completed this period (a) 15,000 15,000
Cost of units started and completed this period (a) 

$46,500 $67,500 114,000
(b)
Total cost of units transferred out $180,200

Blooms: Apply
4S-109
4S-110
27.
Tarten Corporation uses the FIFO method in its process costing system. Operating data for
the Curing Department for the month of March appear below:

Units
to Conversion

57,000
during March

65,000
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?
A. $525,530
B. $592,040
C. $533,090
D. $533,000
FIFO method
Conversion
4S-111
Conversion: 1,000 units  70% 700
Conversion
Cost to complete the units in beginning work in

process inventory:
Equivalent units of production required to

8,100
complete the units in beginning inventory (a)
Cost per equivalent unit (b) $8.20
Cost to complete the units in beginning

inventory $66,420 66,420
(a)  (b)
Units started and completed this period (a) 56,000
Cost per equivalent unit $8.20
Cost of units started and completed this period

$459,200 459,200
(a)  (b)
4S-112

Blooms: Apply
4S-113
4S-114
28. Steven Corporation uses the FIFO method in its process costing system. Department A's
beginning work in process inventory consisted of 15,000 units, 100% complete with
respect to materials and 40% complete with respect to conversion costs. The total cost of
this inventory was $31,000. A total of 40,000 units were transferred out during the month.
The costs per equivalent unit were computed to be $1.30 for materials and $2.20 for
conversion costs. The cost of the units completed and transferred out was:
A. $140,000
B. $138,300
C. $131,700
D. $118,500
FIFO method
Materials: 15,000 units  (100% – 100%) 0
Cost to complete beginning work in process

inventory:

0 9,000

$0 $19,800 19,800
inventory (a)  (b)
4S-115
Cost of units started and completed this period

$32,500 $55,000 87,500
(a)  (b)

Blooms: Apply
4S-116
29.
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:
A. $890,000
B. $71,000
C. $463,000
D. $926,000
FIFO method
Costs to be accounted for:
Cost of beginning work in process inventory $36,000
Costs added to production during the period 427,000
Total cost to be accounted for $463,000
Costs to be accounted for as follows:
Cost of ending work in process inventory $35,000
Cost of units transferred out 428,000
Total cost accounted for $463,000
4S-117
Blooms: Apply
4S-118
30.
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:
A. $526,000
B. $61,000
C. $548,000
D. $274,000
FIFO Method
Costs to be accounted for as follows:

Blooms: Apply
4S-119
4S-120
31.

Units Costs

11,000 35%
inventory

114,000
out
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?
A. 119,100
B. 120,000
C. 114,000
D. 131,000
Weighted-average method equivalent units of production
Conversion
Units transferred to the next department 114,000
4S-121

Blooms: Apply
4S-122
4S-123
32.

Units Costs

11,000 35%
inventory

114,000
out
A. $2.55
B. $2.53
C. $2.50
D. $2.44
Conversion
Weighted-average method cost per equivalent unit
4S-124
Conversion
Costs added during the period $290,000
Total cost (a) $301,000

Blooms: Apply
4S-125
4S-126
33.

Units Costs

11,000 35%
inventory

114,000
out
Assuming that the company uses the FIFO method, what are the equivalent units for
conversion costs for the Blending Department for the month?
A. 119,100
B. 111,950
C. 115,250
D. 114,000
Conversion

inventory:
4S-127
Units started and completed (114,000 –
103,000
11,000)

Blooms: Apply
4S-128
4S-129
34.

Units Costs

11,000 35%
inventory

114,000
out
Assuming that the company uses the FIFO method, what is the cost per equivalent unit
for conversion costs for the month in the Blending Department to the nearest cent?
A. $2.52
B. $2.55
C. $2.44
D. $2.59
Conversion

inventory:
Units started and completed (114,000 – 103,000
4S-130
11,000)
Conversion

Blooms: Apply
4S-131
4S-132
35.
recent month:
Assuming that Tru-Color Paint Corporation uses the FIFO method, the equivalent units for
materials would be:
A. 42,600
B. 45,000
C. 53,000
D. 46,000
Materials: 9,000 units  (100% – 100%) 0
4S-133
Equivalent units of production 45,000 42,600

Blooms: Apply
4S-134
4S-135
36.
recent month:
Assuming Tru-Color Paint Corporation uses the FIFO method, the equivalent units for
conversion costs would be:
A. 42,600
B. 44,400
C. 46,000
D. 54,000
Materials: 9,000 units  (100% – 100%) 0
4S-136

Blooms: Apply
4S-137
4S-138
37.
recent month:
equivalent units for materials would be:
A. 48,000
B. 46,000
C. 54,000
D. 45,000
Units transferred to the next

46,000 46,000
department
4S-139
Blooms: Apply
4S-140
38.
recent month:
equivalent units for conversion costs would be:
A. 44,400
B. 42,600
C. 46,000
D. 48,000

46,000 46,000
department
4S-141
Blooms: Apply
4S-142
4S-143
39.
Percent
Complete
Assuming the weighted-average method is used, the equivalent units for material for
October would be:
A. 54,000 units
B. 50,000 units
C. 48,000 units
D. 44,000 units

50,000 50,000
department
4S-144
Blooms: Apply
4S-145
4S-146
40.
Percent
Complete
Assuming the weighted-average method is used, the equivalent units for conversion for
October would be:
A. 55,000 units
B. 50,000 units
C. 53,500 units
D. 56,500 units

50,000 50,000
department
4S-147
Blooms: Apply
4S-148
4S-149
41.
Percent
Complete
Assuming the FIFO method is used, the equivalent units for material for October would
be:
A. 55,000 units
B. 46,500 units
C. 44,500 units
D. 48,000 units
Materials: 10,000 units  (100% – 60%) 4,000
4S-150

Blooms: Apply
4S-151
4S-152
42.
Percent
Complete
Assuming the FIFO method is used, the equivalent units for conversion for October would
be:
A. 50,500 units
B. 50,000 units
C. 44,500 units
D. 48,000 units
Materials: 10,000 units  (100% – 60%) 4,000
4S-153

Blooms: Apply
4S-154
4S-155
43.
Conversion
Units
Cost

130,000
June
Assuming that the company uses the FIFO cost method, the cost per equivalent unit for
conversion costs for June is closest to:
A. $1.80
B. $1.40
C. $1.64
D. $1.35
Units in beginning work in process inventory + Units started into production or transferred
in = Units in ending work in process inventory + Units completed and transferred out
15,000 + 145,000 = Units in ending work in process inventory + 130,000
Units in ending work in process inventory = 15,000 + 145,000 − 130,000 = 30,000
Conversion
4S-156
inventory:
Units started and completed (130,000 –

115,000
15,000)
Conversion

Blooms: Apply
4S-157
4S-158
44.
Conversion
Units
Cost

130,000
June
Assuming that the company uses the weighted-average method, the cost per equivalent
unit for conversion costs for June is closest to:
A. $1.64
B. $1.56
C. $1.74
D. $1.48
Units in beginning work in process inventory + Units started into production or transferred
in = Units in ending work in process inventory + Units completed and transferred out
15,000 + 145,000 = Units in ending work in process inventory + 130,000
Units in ending work in process inventory = 15,000 + 145,000 − 130,000 = 30,000
Conversion
4S-159
Weighted-average method cost per equivalent unit
Conversion
Costs added during the period 175,700
Total cost (a) $225,900

Blooms: Apply
4S-160
4S-161
45.
The following information was obtained from the records of the first processing
department of Bapst Corporation for the month of May. The company uses the FIFO
method in its process costing system.
Started into production during the

20,000
month
The equivalent units for labor and overhead for the month is:
A. 17,600 units
B. 18,500 units
C. 19,700 units
D. 21,600 units
ending inventory
= 20,000 - 4,000 = 16,000
Labor and Overhead
Labor and Overhead: 3,000 units  (100% – 30%) 2,100
Labor and Overhead: 4,000 units  40% 1,600
4S-162

Blooms: Apply
4S-163
4S-164
46.
The following information was obtained from the records of the first processing
department of Bapst Corporation for the month of May. The company uses the FIFO
Started into production during the

20,000
month
The equivalent units for materials for the month is:
A. 21,600 units
B. 22,500 units
C. 16,000 units
D. 20,000 units
ending inventory
= 20,000 - 4,000 = 16,000
Materials

inventory:
Materials: 3,000 units  (100% – 100%) 0
4S-165

Blooms: Apply
4S-166
47.
Marlan Manufacturing produces a product that passes through two processing
departments. The units from the Molding Department are completed in the Assembly
Department. The activity in the Assembly Department for the current month is presented
below. Marlan uses the FIFO method in its process costing system.

8,000

12,000
The equivalent units (with respect to the Molding Department's costs) transferred from
the Molding Department to the Assembly during the month were:
A. 30,000 units
B. 38,000 units
C. 40,800 units
D. 42,000 units
The units transferred from the Molding Department to the Assembly Department were
100% complete with respect to all of the costs and processing in the Molding Department.

Blooms: Apply
4S-167
4S-168
48.

8,000

12,000
The equivalent units for materials for the Assembly Department during the month were:
A. 30,000 units
B. 38,000 units
C. 40,800 units
D. 42,000 units
inventory
= 38,000 - 8,000 = 30,000
Materials

inventory:
Materials: 8,000 units  (100% – 0%) 8,000
4S-169
Materials: 12,000 units  0% 0

Blooms: Apply
4S-170
4S-171
49.

8,000

12,000
The equivalent units for conversion costs for the Assembly Department during the month
were:
A. 36,800 units
B. 38,000 units
C. 40,800 units
D. 42,000 units
inventory
= 38,000 - 8,000 = 30,000
Conversion

inventory:
4S-172

Blooms: Apply
4S-173
4S-174
50.
Ozogoz Corporation uses the FIFO method in its process costing system. Data concerning

9,100
the month
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.
department?
A. 9,250
B. 10,300
C. 300
D. 8,600
4S-175
FIFO method
Units in beginning work in process inventory = 9,100 - 500 = 8,600
Conversion
Conversion: 500 units  (100% – 30%) 350
Units started and completed (9,100 – 500) 8,600

Blooms: Apply
4S-176
4S-177
51.
Ozogoz Corporation uses the FIFO method in its process costing system. Data concerning

9,100
the month
The cost per equivalent unit for materials for the month in the first processing department
is closest to:
A. $18.67
B. $20.94
C. $19.40
D. $17.14
4S-178
FIFO method
Materials
Materials: 500 units  (100% – 85%) 75
Materials

Blooms: Apply
4S-179
4S-180
52.
Quilling Corporation uses the FIFO method in its process costing system. Data concerning
How many units were started AND completed during the month in the first processing
department?
A. 7,300
B. 8,700
C. 8,100
D. 6,700
FIFO method
4S-181

Blooms: Apply
Learning Objective: 04-01 Record the flow of materials, labor, and overhead through a process costing system.
Topic Area: Applying Costs - Weighted-Average Method
4S-182
4S-183
53.
Quilling Corporation uses the FIFO method in its process costing system. Data concerning
closest to:
A. $33.72
B. $34.74
C. $36.67
D. $35.41
FIFO method
4S-184
Conversion
Conversion

Blooms: Apply
Learning Objective: 04-01 Record the flow of materials, labor, and overhead through a process costing system.
Topic Area: Applying Costs - Weighted-Average Method
4S-185
4S-186
54.
Nouri Corporation uses the FIFO method in its process costing system. Data concerning

6,600
the month
department?
A. 850
B. 7,240
C. 7,600
D. 6,300
FIFO method
4S-187
Materials
Materials: 300 units  (100% – 70%) 90
Units started and completed (6,600 – 300) 6,300

Blooms: Apply
4S-188
4S-189
55.
Nouri Corporation uses the FIFO method in its process costing system. Data concerning

6,600
the month
closest to:
A. $14.48
B. $14.82
C. $15.20
D. $15.56
FIFO method
4S-190
Conversion
Conversion

Blooms: Apply
4S-191
4S-192
56.

4,800
the month
cases, select the answer that is the closest to the answer you computed.
department?
A. 4,500
B. 5,600
C. 400
D. 4,945
FIFO method
4S-193
Materials
Materials: 300 units  (100% – 85%) 45
Materials: 800 units  50% 400

Blooms: Apply
4S-194
4S-195
57.

4,800
the month
department?
A. 5,600
B. 5,060
C. 4,500
D. 320
FIFO method
4S-196
Conversion
Conversion: 800 units  40% 320

Blooms: Apply
4S-197
4S-198
58.

4,800
the month
The cost per equivalent unit for materials for the month in the first processing department
is closest to:
A. $23.14
B. $18.91
C. $21.42
D. $22.06
FIFO method
4S-199
Materials
Materials: 300 units  (100% – 85%) 45
Materials

Blooms: Apply
4S-200
4S-201
59.

4,800
the month
closest to:
A. $44.51
B. $50.00
C. $46.92
D. $46.74
FIFO method
4S-202
Conversion
Conversion

Blooms: Apply
4S-203
4S-204
60.

4,800
the month
The cost of a completed unit transferred out of the department is closest to:
A. $69.88
B. $75.56
C. $60.71
D. $65.92
FIFO method
4S-205
To complete beginning work in

process:
Materials: 300 units  (100% –

45
85%)
Conversion: 300 units  (100% –

240
20%)
Units started and completed 4,500 4,500
Cost added during the

$105,900 $225,200
period (a)
Equivalent units of
4,945 5,060
production (b)
Cost per equivalent unit (a)

$21.416 $44.506 $65.922
 (b)
4S-206
Blooms: Apply
4S-207
4S-208
61.

4,800
the month
A. $369,163
B. $317,192
C. $331,100
D. $340,000
FIFO method
4S-209

process:

45
85%)

240
20%)
Cost added during the period (a) $105,900 $225,200
Equivalent units of production (b) 4,945 5,060
Cost per equivalent unit (a)  (b) $21.416 $44.506
Cost in beginning work in process inventory $5,900 $3,000 $8,900.00

process inventory:

45 240
4S-210
Cost to complete the units in beginning inventory
$963.70 $10,681.42 $11,645.12
(a)  (b)
Cost of units started and completed this

$96,370.07 $200,276.68 $296,646.75
period (a)  (b)
Total cost of units transferred out $317,191.87

Blooms: Apply
4S-211
4S-212
62.

4,800
the month
The cost of ending work in process inventory in the first processing department according
to the company's cost system is closest to:
A. $26,369
B. $22,808
C. $52,738
D. $21,095
FIFO method
4S-213

process:

45
85%)

240
20%)
Equivalent units of production (a) 400 320
Cost of ending work in process inventory (a)  (b) $8,566.23 $14,241.90 $22.808.13
4S-214
Blooms: Apply
4S-215
4S-216
63.

7,900
the month
department?
A. 400
B. 8,700
C. 8,140
D. 7,700
FIFO method
4S-217
Materials
Materials: 200 units  (100% – 80%) 40

Blooms: Apply
4S-218
4S-219
64.

7,900
the month
closest to:
A. $43.65
B. $41.57
C. $42.67
D. $43.33
4S-220
FIFO method
Conversion
Conversion

Blooms: Apply
4S-221
4S-222
65.

7,900
the month
A. $505,800
B. $510,700
C. $541,932
D. $492,435
4S-223
FIFO method

process:

40
80%)

170
15%)
Cost in beginning work in process inventory $3,600 $1,300 $4,900

process inventory:
Equivalent units of production required to complete 40 170
4S-224
the units in beginning inventory (a)
Cost to complete the units in beginning inventory (a) 

$829 $7,066 $7,895
(b)
Cost of units started and completed this period (a) 

$159,582 $320,058 $479,640
(b)

Blooms: Apply
4S-225
In the department's cost reconciliation report for April, the costs added to production in
the department would be:
A. $270,000
B. $225,000
C. $252,000
D. $234,000

Blooms: Apply
4S-226
67.
In April, one of the processing departments at Salatino Corporation had beginning work in
In the department's cost reconciliation report for April, the total cost accounted for would
be:
A. $297,000
B. $594,000
C. $63,000
D. $567,000
Total cost accounted for = Cost of units transferred out + Ending work in process
inventory = $261,000 + $36,000 = $297,000.

Blooms: Apply
Essay Questions
4S-227
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
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.
Units transferred to the next 29,000 29,000

department
4S-228
b. FIFO method equivalent units of production
Materials: 4,000 units  (100% – 100%) 0

Blooms: Apply
4S-229
4S-230
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 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.
FIFO method:
To complete the beginning work in

process:
Materials: 700 units  (100% – 210

70%)
Conversion: 700 units  (100% – 595

15%)
4S-231
Blooms: Apply
4S-232
4S-233
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.
FIFO method:

process:

60%)

15%)
4S-234

Blooms: Apply
4S-235
4S-236
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
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

8,400
department
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.
FIFO method:

process:

60%)

25%)
Units started and completed during 7,600 7,600
4S-237
the period

Blooms: Apply
4S-238
4S-239
72.
Voyer Corporation uses the FIFO method in its process costing. The following data pertain
to its Assembly Department for August.
Percent
Complete
Work in process, August 1 700 70% 30%
Units completed during August and transferred to the next

5,900
department
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.
FIFO method:

process:

70%)

30%)
Units started and completed during 5,200 5,200
4S-240
the period

Blooms: Apply
4S-241
4S-242
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.
Required:
Using the FIFO method, determine the equivalent units of production for materials and
conversion costs.
FIFO method:
period - Units in ending work in process inventory = 22,000 - 300 = 21,700

process:
4S-243
70%)

50%)

Blooms: Apply
4S-244
4S-245
74.
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.
Materials cost $376

21,000
month
Required:
4S-246
FIFO method:

process:

80%)

60%)
b Materials Conversion
Cost added during the period $93,645 $825,531

(a)

(b)
Cost per equivalent unit (a)  $4.50 $39.90

(b)
4S-247
c Materials Conversion Total
Equivalent units of 490 350

production
Cost of ending work in $2,205 $13,965 $16,170

process
d. Materials Conversion Total
Cost in beginning work in process inventory $376 $2,376 $2,752

inventory:
Equivalent units to complete 20 40
Cost to complete $90 $1,596 $1,686
Cost of units started and completed:
Cost of units started and completed $91,350 $809,970 $901,320
4S-248
Blooms: Apply
4S-249
4S-250
75.
Easy Inc. uses the FIFO method in its process costing system. The following data concern
Materials cost $594

26,000
month
Required:
4S-251
FIFO method:
a.

process:

60%)

80%)
b.

(a)

(b)

(b)
c.
4S-252
Ending work in process: Materials Conversion Total
Equivalent units of 400 320

production
Cost of ending work in $1,240 $11,104 $12,344

process
d.
Cost in beginning work in process inventory $594 $8,256 $8,850

inventory:
Equivalent units to complete 120 60
Cost per equivalent $3.10 $34.70
Cost to complete $372 $2,082 $2,454
Cost of units started and completed:
Cost of units started and completed $78,120 $874,440 $952,560
4S-253
Blooms: Apply
4S-254
76.
Rauls Corporation uses the FIFO method in its process costing. The following data
concern the company's Assembly Department for the month of January.
Work in process, January 1 $14,798 $8,864
Cost added to production in the Assembly Department during

$93,922 $50,414
January
Equivalent units of production for January 3,020 2,770
Required:
Compute the costs per equivalent unit for the Assembly Department for January using the
FIFO method.
FIFO method:

(a)

(b)

(b)
4S-255
Blooms: Apply
4S-256
77.
Hayek Corporation uses the FIFO method in its process costing. The following data
concern the company's Mixing Department for the month of August.
Work in process, August 1 $31,734 $30,320
Cost added to production in the Mixing Department during

$91,332 $81,864
August
Equivalent units of production for August 7,740 7,580
Required:
Compute the cost per equivalent unit for materials and conversion for the Mixing
Department for August using the FIFO method.
FIFO method:

(a)

(b)

(b)
4S-257
Blooms: Apply
4S-258
4S-259
78
. Mottai Corporation uses the FIFO method in its process costing system. The following data
concern the company's Assembly Department for the month of August.

320 110
process inventory
Required:
Determine the cost of ending work in process inventory and the cost of units transferred out
of the department during August using the FIFO method.
FIFO method:
Cost of ending work in process inventory (a)  $12,996 $4,274 $17,270

(b)
4S-260
Cost in beginning w inventory $4,410

process inventory:
Equivalent units of production required to 320 110

Cost to complete beginning inventory (a)  (b) 10,944 2,035 12,979
Cost of units started and completed this period $124,146 $67,155 $191,301
(a)  (b)

Blooms: Apply
4S-261
4S-262
79.
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.
Equivalent units required to complete the units in beginning work

190 160
in process inventory
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.
FIFO method:

Cost of ending work in process inventory (a)  $8,587 $6,310 $14,897
(b)
4S-263
Cost in beginning w inventory $4,190
process inventory:
Equivalent units of production required to 190 160
Cost to complete beginning inventory (a)  (b) $5,263 $3,824 9,087
Cost of units started and completed this $61,217 $52,819 114,036
period (a)  (b)

Blooms: Apply
4S-264
80.
In February, one of the processing departments at Mateus Corporation had beginning work
in process inventory of $20,000 and ending work in process inventory of $30,000. During
the month, $206,000 of costs were added to production and the cost of units transferred
out from the department was $196,000.The company uses the FIFO method in its process
costing system.
Required:
Construct a cost reconciliation report for the department for the month of February.
Costs added to production during the month 206,000
Costs accounted for as follows:

Blooms: Apply
4S-265
81.
In December, one of the processing departments at Moshier Corporation had ending work
in process inventory of $24,000. During the month, $293,000 of costs were added to
production and the cost of units transferred out from the department was $297,000. The
company uses the FIFO method in its process costing system.
Required:
Construct a cost reconciliation report for the department for the month of December.
Cost of beginning work in process inventory + Costs added to production = Cost of ending
working in process inventory + Cost of units transferred out
Cost of beginning work in process inventory + $293,000 = $24,000 + $297,000
Cost of beginning work in process inventory = $24,000 + $297,000 − $293,000 = $28,000
4S-266
Blooms: Apply
4S-267
82.
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
Required:
Construct a cost reconciliation report for the department for the month of October.
Cost of beginning work in process inventory + Costs added to production = Cost of ending
working in process inventory + Cost of units transferred out
$21,000 + $247,000 = $35,000 + Cost of units transferred out
Cost of units transferred out = $21,000 + $247,000 − $35,000 = $233,000
4S-268
Blooms: Apply
4S-269

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True / False Questions

Multiple Choice Questions

13. Under the FIFO method, unit costs would:

Started in May 40,000

Completed in May and transferred to Department B 38,000

Percent Complete with Respect to

Beginning work in process inventory 2,400 40%

Transferred in from the prior department

Ending work in process inventory 8,600 60%

Percent Complete with Respect

Beginning work in process inventory 3,800 20%

Transferred in from the prior department during

Completed and transferred to the next

Ending work in process inventory 7,300 80%

Percent Complete with

Beginning work in process

Transferred in from the prior

Completed and transferred to

Ending work in process

Percent Complete with Respect to

Beginning work in process inventory 19,000 80%

Transferred in from the prior department

Ending work in process inventory 17,000 90%

Beginning work in process inventory 20,000 $40,000

Units completed and transferred out 130,000

Percent Complete with Respect to

Beginning work in process inventory 9,000 10%

Transferred in from the prior department

Completed and transferred to the next

Ending work in process inventory 1,000 70%

Number of Percent Completion Conversion

Beginning work in process

Units started into production 120,000

Units completed and transferred

Ending work in process inventory 17,000 30%

Number of Percent Completion Conversion

Beginning work in process

Units started into production 120,000

Units completed and transferred

Ending work in process inventory 17,000 30%

Percent Completion Conversion

Beginning work in process

Units started into production 120,000

Units completed and transferred

Ending work in process inventory 17,000 30%

Number of Percent Completion Conversion

Beginning work in process

Units started into production 120,000

Units completed and transferred

Ending work in process inventory 17,000 30%

Units Percent Complete Conversion

Beginning work in process inventory 9,000 60%

Units started into production 45,000

Units completed and transferred out 46,000

Ending work in process inventory 8,000 25%

Units Percent Complete Conversion

Beginning work in process inventory 9,000 60%

Units started into production 45,000

Units completed and transferred out 46,000

Ending work in process inventory 8,000 25%

Units Percent Complete Conversion