Exam 19: Fifo Method

The weighted-average method and the FIFO method of process costing use the same manufacturing accounts.

The activity in Nolan Company's Blending Department for the month of April is given below: All materials are added at the beginning of processing in the Blending Department. -The equivalent units for labor and overhead for the month,using the FIFO method,are:

Morvan Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. -The cost of a completed unit transferred out of the department is closest to:

Nyman Company successfully switched to a lean production system at the beginning of March. Therefore, as shown by the summary below, there were no work in process inventories on hand at the end of the month. -If Nyman continues to successfully employ lean production and starts 140,000 units into production during April (the next month),the April equivalent units for conversion costs using the weighted-average method would be:

Kharbanda 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 for conversion costs in the Enameling Department for May?

Zippy Company has a process costing system. Information about units processed and processing costs incurred during a recent month in the Refining Department follow: The beginning work in process inventory had $10,946 of processing cost attached to it at the beginning of the month. During the month, the Department incurred an additional $289,954 in processing cost. -Assuming that the company uses the FIFO method,what are the equivalent units for processing costs for the Department for the month?

The following data has been provided by Palafox 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.

Dung Corporation uses the FIFO method in its process costing system.The following data concern the company's Assembly Department for the month of August. 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.

The FIFO method provides a major advantage over the weighted-average method in that:

Nyman Company successfully switched to a lean production system at the beginning of March. Therefore, as shown by the summary below, there were no work in process inventories on hand at the end of the month. -If Nyman Company uses the weighted-average cost method,the March equivalent units for materials would be:

The following data pertain to the Milling Department of Gehle Corporation for July.The company uses the FIFO method in its process costing. Required: Compute the equivalent units of production for both materials and conversion costs for the Milling Department for July using the FIFO method.

Kortge 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.

In the cost reconciliation report,the costs to be accounted for equals the cost of beginning work in process inventory plus the costs added during the period.

Under the FIFO method,the equivalent units of production relate only to work done during the current period.

Jolly Company uses the FIFO method in its process costing system.Beginning inventory in the mixing processing center consisted of 4,000 units,75% complete with respect to conversion costs.Ending work in process inventory consisted of 3,000 units,60% complete with respect to conversion costs.If 12,000 units were transferred to the next processing center during the period,the equivalent units for conversion costs would be:

Morvan Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. -The cost per equivalent unit for materials for the month in the first processing department is closest to:

The activity in Nolan Company's Blending Department for the month of April is given below: All materials are added at the beginning of processing in the Blending Department. -The equivalent units for material for the month,using the FIFO method,are:

The information below was obtained from the records of one of the departments of Cushing Company for the month of August. The company uses the FIFO method in its process costing system. All materials are added at the beginning of the process. -The equivalent units for materials for the month of August are:

Morvan Corporation uses the FIFO method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. -What are the equivalent units for materials for the month in the first processing department?