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Exam 8: Fifo Method

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Question 1

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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.

E) A) and D)
F) B) and D)

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Question 2

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The following data pertain to the Milling Department of Vario 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.

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FIFO method:
Units started and...

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Question 3

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

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?

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: The equivalent units of production for conversion costs for the month are:

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.

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.

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

Assuming that the company uses the FIFO method, what are the equivalent units for conversion costs for the Blending Department for the month?

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.

Assuming the FIFO method is used, the equivalent units for conversion for October would be:

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

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:

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

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.

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.

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

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

Assuming that Tru-Color Paint Corporation uses the FIFO method, the equivalent units for materials would be:

The equivalent units for materials for the Assembly Department during the month were: