Exam 16: Process Costing6 Cost-Volume-Profit Relationships

Billings Corporation uses the FIFO method in its process costing system.On July 1, Department A had 10,000 units in process that were 80% complete with respect to conversion.On July 31 the department had 8,000 units in process that were 60% complete with respect to conversion.The department transferred 40,000 units out during the month, of which 10,000 units came from the beginning work in process inventory, and 30,000 units were started and completed during the month.All materials are added at the beginning of the process in Department A.What are the equivalent units of production for the month for materials and conversion, respectively?

The weighted-average method of process costing differs from the FIFO method of process costing in that the weighted-average method:

Under the FIFO method, the cost per equivalent unit equals:

The equivalent units for materials for the month, using the weighted-average method, is:

Dorman Music Corporation manufactures guitars and uses a FIFO process costing system.The following information relates to September production: The amount of conversion cost that should be assigned to the guitars in work in process on September 30 is closest to:

The equivalent units in the ending work in process inventory will be different under the FIFO and the weighted-average methods of process costing.

The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to:

What are the equivalent units for materials for the month in the first processing department?

Intask Corporation uses the FIFO method in its process costing system.Beginning inventory in the mixing department consisted of 6,000 units that were 75% complete with respect to conversion costs.Ending work in process inventory consisted of 5,000 units that were 60% complete with respect to conversion costs.If 12,000 units were transferred to the next processing department during the period, the equivalent units of production for conversion cost would be:

Using the weighted-average method, the equivalent units for conversion for March would be:

What total amount of cost should be assigned to the units completed and transferred out during February?

The cost per equivalent unit for materials for the month in the first processing department is closest to:

Using the FIFO method, the equivalent units for materials for March would be:

The equivalent units for labor and overhead for the month of August are:

In February, one of the processing departments at Wyke Corporation had ending work in process inventory of $15,000.During the month, $264,000 of costs were added to production and the cost of units transferred out from the department was $273,000.The company uses the FIFO method in its process costing system.In the department's cost reconciliation report for February, the total cost to be accounted for would be:

Sharp Corporation 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.

The total cost transferred from the first processing department to the next processing department during the month is closest to:

The cost per equivalent unit under the FIFO method of process costing is equal to the cost added during the period divided by the equivalent units of production for the period.

The total cost transferred from the first processing department to the next processing department during the month is closest to:

The equivalent units for material for the month, using the FIFO method, is: