Exam 16: Process Costing6 Cost-Volume-Profit Relationships

The Dover Corporation uses the FIFO method in its process costing system.The following information relates to one month's activity in the Cooking Department of the company: There was $23,600 of conversion cost in the beginning work in process inventory.During the month, $327,000 in additional conversion cost was incurred. Required: a.Determine the equivalent units of production for conversion for the month. b.Determine the cost per equivalent unit of production for conversion for the month. c.Determine the total cost assigned to the ending work in process inventory. d.Determine the total cost transferred out during the month.

The cost per equivalent unit for conversion costs for the first department for the month is closest to:

The cost per equivalent unit for conversion costs will always be the same under both the FIFO and the weighted-average methods if there is no beginning work in process inventory.

Onyemah 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 of production for conversion costs in the Brazing Department for November?

Zubris Corporation uses the FIFO method in its process costing.The following data concern the company's Assembly Department for the month of January. Required: Compute the costs per equivalent unit for the Assembly Department for January using the FIFO method.

Kalyan Corporation uses the FIFO method in its process costing system.Operating data for the Enameling Department for the month of May appear below: What were the equivalent units of production for conversion costs in the Enameling Department for May?

The equivalent units for conversion for March, using the weighted-average method, are:

Laurant Corporation uses the FIFO method in its process costing system.Department A is the first stage of the company's production process.The following information is available for conversion costs for the month of May for Department A: The equivalent units of production for conversion costs for the month is closest to:

Farsat 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.

Overboard 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: The cost per equivalent unit for conversion cost is closest to:

Eban Corporation 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% complete with respect to conversion costs.The conversion cost in this beginning work in process inventory was $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% complete with respect to conversion costs.A total of $284,160 in conversion costs were incurred in the department during the month. The cost per equivalent unit for conversion costs is closest to:

Que Corporation uses the FIFO method in its process costing system.Operating data for the Cutting Department for the month of March appear below: According to the company's records, the conversion cost in beginning work in process inventory was $3,705 at the beginning of March.Additional conversion costs of $210,213 were incurred in the department during the month. The cost per equivalent unit for conversion costs for March is closest to:

Claus Corporation manufactures a single product and uses process costing.As of the beginning of January, the company successfully implemented lean production.As a result, no work in process inventories were on hand at the end of January, as indicated by the data below: Required: a.Assume the company uses the weighted-average method.Compute the equivalent units of production for January. b.Assume that the company uses the FIFO method.Compute the equivalent units of production for January. c.If the company starts 450,000 units into production during the following month (February)has no ending work in process inventory in that month, what would be the equivalent units of production under the weighted-average method? The FIFO method?

All production costs have been steadily rising in the Donner Company for several periods.The company maintains large work in process inventories.Donner Company's cost per equivalent unit computed using the FIFO method would be:

What are the Fermenting Department's equivalent units (gallons)of production related to materials for May?

In December, one of the processing departments at Bonine Corporation had ending work in process inventory of $32,000.During the month, $264,000 of costs were added to production and the cost of units transferred out from the department was $257,000.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.

In May, one of the processing departments at Messerli Corporation had beginning work in process inventory of $14,000 and ending work in process inventory of $35,000.During the month, $148,000 of costs were added to production and the cost of units transferred out from the department was $127,000.The company uses the FIFO method in its process costing system.In the department's cost reconciliation report for May, the total cost to be accounted for would be:

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. 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.

The equivalent units for materials for the month of August are:

The following data have been provided by Corby Corporation for the Circuit Prep Department.The company uses the FIFO method in its process costing. Required: Determine the equivalent units of production for the Circuit Prep Department for August using the FIFO method.