1. The Rugger company uses a process costing system. During the period, 500 units were in
beginning inventory, 1,400 were started and 1,000 units were completed and transferred out.
The beginning work in process was 20 % complete and the ending work in process units were
60% complete. Materials started at the beginning of the process and conversion costs are added
evenly throughout production. Beginning WIP had $8,950 of materials costs and $860 of
conversion costs. The cost of materials added during the current period amounted to $29,050;
the conversion costs added during the current period amounted to $34,560. What was the cost
per equivalent unit of production for conversion costs, using the weighted-average method?
A. $20
B. $23
C. $20.75
D. $24
2. Assume an ending work in process of inventory of 100 units, 80% complete regarding materials
and 30% complete regarding conversion costs. What is the number of equivalent unit for
materials and conversion, assuming the FIFO method is used?
A. 30 units for materials and 90 units for conversion costs
B. 80 units for materials and 30 units for conversion costs.
C. 100 units for materials and 100 units for conversion costs.
D. 100 units for materials and 70 units for conversion costs.
3. Winter Corporation uses a process costing system. Materials are added at the beginning of the
process while conversion costs are incurred uniformly throughout the process. Work in process
inventory at the beginning of the period is 70 % complete and 40 % complete at the end of the
period. Additional data is as follows:
Beginning work in process inventory
33,500 units
Units Completed
325,000 units
Ending Work in process inventory
58,500 units
Cost of direct materials added during the current period
$962,500
Cost of conversion added during the current period
$714,890
Cost of direct materials contained in beginning work in process inventory
$72,950
Cost of conversion contained in beginning work in process inventory
$69,010
Assuming Winter uses the FIFO method, what is the total cost of the ending work in process
inventory?
A. $1,608.750
B. $1,606,995
C. $212,355
D. $210,600
4. Forsyth Company produces calendars in a one-process department. Materials are introduced at
the beginning of the process. Conversion is applied uniformly throughout the process. Data for
the current period is as follows:
Beginning work in process inventory (40% complete)
22,500 units
Units started in current period
130,000 units
Ending work in process inventory (60% complete)
28,500 units
Costs contained in beginning work in process inventory
Direct Materials
$44,850
Conversion
$23,156
Costs added during current period
Direct materials
$312,000
Conversion
$422,720
Assuming Forsyth uses the FIFO method, what were the equivalent units of production for
conversion costs?
A 132,100
B. 152,500
C. 130,000
D. 141,100
Assuming Forsyth uses the FIFO method, what was the cost per equivalent unit produced for
direct materials?
A. $3.16
B. $3.20
C. $2.34
D. $2.40
5. The blue tide company manufactures light bulbs in a single process. The following information is
available:
Work in process inventory, Jan. 1
2,000 units
Units started in production
12,000 units
units completed and transferred out
9,000 units
work in process inventory, Dec. 31
5,000 units
Production costs
Direct Materials
$38,250
Direct Labor
$14,000
Manufacturing overhead
$8,560
Materials are added at the end of the process. The beginning work in process was 70 % complete
and had $2,250 of materials costs and $9,340 of conversion costs. The ending work in process
was 40% complete. Assuming the FIFO method was used, what was the cost per equivalent units
of production for material costs?
A. $2.90
B. $4.50
C. $2.35
D. $4.25
6. Assuming that there was no beginning work in process inventory, and the ending work in process
inventory is 30% complete as to direct materials costs, the number of equivalent units for direct
materials costs would be which of the following assuming the FIFO method?
A. Less than the number of units started in production.
B. Less than the number of units completed.
C. Equal to the number of units completed.
D. Equal to the number of units started in production.
7. PCS Corporation manufactures clocks using a two-department process. Direct materials are
added in both the assembly and finishing departments. Conversion costs are applied uniformly
throughout the process. The FIFO method of process costing is used. Data for the finishing
department for the month of April follow:
Beginning work in process inventory
Number of units
14,000
Transferred-in costs
$142,500
Direct materials (100% complete)
$44,950
conversion costs (60% complete)
$39,135
Units transferred in from Assembly-department during April:
Number of units
45,000
Transferred in costs
$477,000
Costs added during April:
Direct materials
$135,000
Conversion Costs
$212,850
Ending work in process inventory
Number of units
17,000
(100% complete as to direct materials and 30% complete as to conversion costs)
What was the cost transferred from the Finishing department in April?
A. $257,635
B. $793,800
C. $259,250
D. 792,185
What were the equivalent units of production for direct materials?
A. 59,000
B. 45,000
C. 38,700
D. 47,100
8. The USA company manufactures flags in a single process. The following information has been
provided by USA company:
Work in process inventory. Jan, 1
5,000 units
Units started in production
18,000 units
Work in process inventory, Dec. 31
6,000 units
Production Costs:
Direct Materials
$213,850
Direct labor
$570,425
Manufacturing overhead
$400,000
The beginning units still in process are 30% complete with respect to direct materials and 40%
complete with respect to conversion costs and had $22,550 of materials costs and $108,725 of
conversion costs. The ending units still in process are 45% complete with respect to direct
materials and 35% complete with respect to conversion costs. Assuming the FIFO method was
used, what was the cost per equivalent unit of production for direct materials?
A. $56.50
B. $12
C. $56.75
D.$11.75
Assuming the FIFO method was used, what were the equivalent units of production for direct
materials?
A. 17,100 units
B. 19,100 units
C. 19,700 units
D. 18,200 units
9. The Made Rite Shoe Corporation uses a process costing system. In the cutting department, there
was no beginning inventory. 4,000 units were started during the period and by the end of the
period, all but 400 units had been completed. The 400 units were 80% complete regarding
materials and 40% complete regarding conversion costs. Costs added during the current period
include $66,640 for materials and $70,312 for conversion. What was the number of equivalent
units of production for conversion costs assuming the FIFO method?
A. 3,700
B. 3,760
C. 3,900
D. 3,920
What was the number of equivalent units of production for direct materials, assuming the FIFO
method?
A. 3,540
B. 3,900
C 3,920
D. 3,760
10. XYZ company manufactures paint. One of its plants makes a light colored base that can be tinted
at the retail store to match any color chosen by the customer. At the end of the current month,
XYZ had 5,000 gallons of paint still in process. All of the ingredients had been added to the vats,
but they still needed to be mixed and then poured into gallon containers. Each gallon was 75% of
the way through the production process and conversion costs are incurred evenly throughout
the process. What are the equivalent units of conversion costs in the ending work in process
inventory, assuming the FIFO method is used?
A. 3,750
B. 5,000
C. 1,250
D.0
