Test bank cost and management accounting 4e by barfield ch06

CHAPTER 6
PROCESS COSTING
MULTIPLE CHOICE
1.

Which cost accumulation procedure is most applicable in continuous mass-production
manufacturing environments?
a.
b.
c.
d.

standard
actual
process
job order

ANSWER:
2.

engage in road and bridge construction.
produce sailboats made to customer specifications.
produce bricks for sale to the public.
construct houses according to customer plans.

ANSWER:

c

EASY

A producer of ________ would not use a process costing system.
a.
b.
c.
d.

gasoline
potato chips
blank videotapes
stained glass windows

ANSWER:
4.

EASY

Process costing is used in companies that
a.
b.
c.
d.

3.

c

d

EASY

A process costing system is used by a company that
a.
b.
c.
d.

produces heterogeneous products.
produces items by special request of customers.
produces homogeneous products.
accumulates costs by job.

ANSWER:

c

EASY

6–1


6–2

5.

Chapter 6

Which is the best cost accumulation procedure to use for continuous mass production of
like units?
a.
b.

c.
d.

actual
standard
job order
process

ANSWER:
6.

d.

EASY

units completed by a production department in the period.
number of units worked on during the period by a production department.
number of whole units that could have been completed if all work of the period
had been used to produce whole units.
identifiable units existing at the end of the period in a production department.

ANSWER:

c

MEDIUM

In a process costing system using the weighted average method, cost per equivalent unit
for a given cost component is found by dividing which of the following by EUP?
a.

b.
c.
d.

only current period cost
current period cost plus the cost of beginning inventory
current period cost less the cost of beginning inventory
current period cost plus the cost of ending inventory

ANSWER:
8.

d

Equivalent units of production are equal to the
a.
b.
c.

7.

Process Costing

b

EASY

The weighted average method is thought by some accountants to be inferior to the FIFO
method because it
a.

b.
c.
d.

is more difficult to apply.
only considers the last units worked on.
ignores work performed in subsequent periods.
commingles costs of two periods.

ANSWER:

d

MEDIUM


Chapter 6

9.

Process Costing

The first step in determining the cost per EUP per cost component under the weighted
average method is to
a.
b.
c.
d.

add the beginning Work in Process Inventory cost to the current period’s

production cost.
divide the current period’s production cost by the equivalent units.
subtract the beginning Work in Process Inventory cost from the current period’s
production cost.
divide the current period’s production cost into the EUP.

ANSWER:
10.

MEDIUM

started and completed during the period.
residing in beginning Work in Process Inventory.
residing in ending Work in Process Inventory.
uncompleted in Work in Process Inventory.

ANSWER:

b

MEDIUM

EUP calculations for standard process costing are the same as
a.
b.
c.
d.

the EUP calculations for weighted average process costing.
the EUP calculations for FIFO process costing.

LIFO inventory costing for merchandise.
the EUP calculations for LIFO process costing.

ANSWER:
12.

a

The difference between EUP calculated using FIFO and EUP calculated using weighted
average is the equivalent units
a.
b.
c.
d.

11.

6–3

b

MEDIUM

In a FIFO process costing system, which of the following are assumed to be completed
first in the current period?
a.
b.
c.
d.

units started this period
units started last period
units transferred out
units still in process

ANSWER:

b

EASY


6–4

13.

Chapter 6

To compute equivalent units of production using the FIFO method of process costing,
work for the current period must be stated in units
a.
b.
c.
d.

completed during the period and units in ending inventory.
completed from beginning inventory, units started and completed during the
period, and units partially completed in ending inventory.
started during the period and units transferred out during the period.
processed during the period and units completed during the period.

ANSWER:
14.

MEDIUM

the goods produced are homogeneous.
there is no beginning Work in Process Inventory.
there is no ending Work in Process Inventory.
beginning and ending Work in Process Inventories are each 50 percent complete.

ANSWER:

b

EASY

The primary difference between the FIFO and weighted average methods of process
costing is
a.
b.
c.
d.

in the treatment of beginning Work in Process Inventory.
in the treatment of current period production costs.
in the treatment of spoiled units.
none of the above.

ANSWER:

16.

b

The FIFO method of process costing will produce the same cost of goods transferred out
amount as the weighted average method when
a.
b.
c.
d.

15.

Process Costing

a

EASY

Material is added at the beginning of a process in a process costing system. The
beginning Work in Process Inventory for the process was 30 percent complete as to
conversion costs. Using the FIFO method of costing, the number of equivalent units of
material for the process during this period is equal to the
a.
b.
c.
d.

beginning inventory this period for the process.
units started this period in the process.

units started this period in the process plus the beginning Work in Process
Inventory.
units started and completed this period plus the units in ending Work in Process
Inventory.

ANSWER:

d

MEDIUM


Chapter 6

17.

Process Costing

In a cost of production report using process costing, transferred-in costs are similar to
the
a.
b.
c.
d.

cost of material added at the beginning of production.
conversion cost added during the period.
cost transferred out to the next department.
cost included in beginning inventory.

ANSWER:
18.

EASY

debit Work in Process Inventory #2, credit Finished Goods Inventory.
debit Finished Goods Inventory, credit Work in Process Inventory #1.
debit Finished Goods Inventory, credit Work in Process Inventory #2.
debit Cost of Goods Sold, credit Work in Process Inventory #2.

ANSWER:

c

EASY

Transferred-in cost represents the cost from
a.
b.
c.
d.

the last department only.
the last production cycle.
all prior departments.
the current period only.

ANSWER:
20.

a

In a process costing system, the journal entry to record the transfer of goods from
Department #2 to Finished Goods Inventory is a
a.
b.
c.
d.

19.

6–5

c

EASY

Which of the following is(are) the same between the weighted average and FIFO
methods of calculating EUPs?

a.
b.
c.
d.

Units to
account for
no
yes
yes

yes

ANSWER:

d

EUP
calculations
yes
yes
no
no
EASY

Total cost to
account for
no
yes
no
yes


6–6

21.

Chapter 6

Process costing techniques should be used in assigning costs to products
a.

b.
c.
d.

if a product is manufactured on the basis of each order received.
when production is only partially completed during the accounting period.
if a product is composed of mass-produced homogeneous units.
whenever standard-costing techniques should not be used.

ANSWER:
22.

EASY

strict FIFO.
modified FIFO.
weighted average costing.
normal costing.

ANSWER:

b

MEDIUM

A process costing system
a.
b.
c.
d.

cannot use standard costs.
restates Work in Process Inventory in terms of completed units.
accumulates costs by job rather than by department.
assigns direct labor and manufacturing overhead costs separately to units of
production.

ANSWER:
24.

c

Averaging the total cost of completed beginning inventory and units started and
completed over all units transferred out is known as
a.
b.
c.
d.

23.

Process Costing

b

EASY

A process costing system does which of the following?
a.
b.

c.
d.

Calculates EUPs
no
no
yes
yes

ANSWER:

c

EASY

Assigns costs to inventories
no
yes
yes
no


Chapter 6

25.

Process Costing

A process costing system

a.
b.
c.
d.

Calculates average cost
per whole unit
yes
no
yes
no

ANSWER:
26.

EASY

job order and standard
costing systems.
job order and process costing systems.
process and standard costing systems.
job order and normal costing systems.

ANSWER:

b

EASY

When standard costs are used in process costing,

a.
b.
c.
d.

variances can be measured during the production period.
total costs rather than current production and current costs are used.
process costing calculations are made simpler.
the weighted average method of calculating EUPs makes computing transferredout costs easier.

ANSWER:
28.

d

Determines total units to
account for
yes
no
no
yes

A hybrid costing system combines characteristics of
a.
b.
c.
d.

27.

6–7

d

MEDIUM

Short Company transferred 5,500 units to Finished Goods Inventory during June. On
June 1, the company had 300 units on hand (40 percent complete as to both material and
conversion costs). On June 30, the company had 800 units (10 percent complete as to
material and 20 percent complete as to conversion costs). The number of units started
and completed during June was
a.
b.
c.
d.

5,200.
5,380.
5,500.
6,300.

ANSWER:

a

EASY


6–8

29.

Chapter 6

Brown Co. started 9,000 units in October. The company transferred out 7,000 finished
units and ended the period with 3,500 units that were 40 percent complete as to both
material and conversion costs. Beginning Work in Process Inventory units were
a.
b.
c.
d.

500.
600.
1,500.
2,000.

ANSWER:
30.

c

EASY

X Co. had beginning Work in Process Inventory of 5,000 units that were 40 percent
complete as to conversion costs. X started and completed 42,000 units this period and
had ending Work in Process Inventory of 12,000 units. How many units were started
this period?
a.
b.

c.
d.

54,000
59,000
42,000
47,000

ANSWER:
31.

Process Costing

a

MEDIUM

Winn Co. uses a weighted average process costing system. Material is added at the start
of production. Winn Co. started 13,000 units into production and had 4,500 units in
process at the start of the period that were 60 percent complete as to conversion costs. If
Winn transferred out 11,750 units, how many units were in ending Work in Process
Inventory?
a.
b.
c.
d.

1,250
3,500
5,750

3,000

ANSWER:

c

EASY


Chapter 6

32.

Process Costing

Murphy Co. uses a weighted average process costing system and started 30,000 units
this month. Murphy had 12,000 units that were 20 percent complete as to conversion
costs in beginning Work in Process Inventory and 3,000 units that were 40 percent
complete as to conversion costs in ending Work in Process Inventory. What are
equivalent units for conversion costs?
a.
b.
c.
d.

37,800
42,000
40,200
40,800

ANSWER:
33.

c

EASY

Kim Co. makes small metal containers. The company began December with 250
containers in process that were 30 percent complete as to material and 40 percent
complete as to conversion costs. During the month, 5,000 containers were started. At
month end, 1,700 containers were still in process (45 percent complete as to material
and 80 percent complete as to conversion costs). Using the weighted average method,
what are the equivalent units for conversion costs?
a.
b.
c.
d.

4,610
4,910
3,450
4,560

ANSWER:
34.

6–9

b

MEDIUM

Zammillo Co. uses a FIFO process costing system. The company had 5,000 units that
were 60 percent complete as to conversion costs at the beginning of the month. The
company started 22,000 units this period and had 7,000 units in ending Work in Process
Inventory that were 35 percent complete as to conversion costs. What are equivalent
units for material, if material is added at the beginning of the process?
a.
b.
c.
d.

18,000
22,000
25,000
27,000

ANSWER:

b

EASY


6–10

35.

Chapter 6

Process Costing

Lisa Co. makes fabric-covered hatboxes. The company began August with 500 boxes in
process that were 100 percent complete as to cardboard, 80 percent complete as to cloth,
and 60 percent complete as to conversion costs. During the month, 3,300 boxes were
started. On August 31, 350 boxes were in process (100 percent complete as to
cardboard, 70 percent complete as to cloth, and 55 percent complete as to conversion
costs). Using the FIFO method, what are equivalent units for cloth?
a.
b.
c.
d.

3,450
3,295
3,395
3,595

ANSWER:

b

MEDIUM

Use the following information for questions 36–38.
Forte Co. has the following information for May:
Beginning Work in Process Inventory
(70% complete as to conversion)
Started
Ending Work in Process Inventory

(10% complete as to conversion)

6,000 units
24,000 units
8,500 units

Beginning WIP Inventory Costs:
Material
$23,400
Conversion
50,607
Current Period Costs:
Material
Conversion

$31,500
76,956

All material is added at the start of the process and all finished products are transferred out.
36.

How many units were transferred out in May?
a.
b.
c.
d.

15,500
18,000
21,500

24,000

ANSWER:

c

EASY


Chapter 6

37.

Process Costing

Assume that weighted average process costing is used. What is the cost per equivalent
unit for material?
a.
b.
c.
d.

$1.83
$1.05
$0.55
$1.31

ANSWER:
38.

6–11

a

MEDIUM

Assume that FIFO process costing is used. What is the cost per equivalent unit for
conversion?
a.
b.
c.
d.

$7.03
$3.44
$4.24
$5.71

ANSWER:

c

MEDIUM


6–12

Chapter 6

Process Costing

Use the following information for questions 39–46.
The December 25th Co. makes wreaths in two departments: Forming and Decorating. Forming
began the month with 500 wreaths in process that were 100 percent complete as to material and
40 percent complete as to conversion. During the month, 6,500 wreaths were started. At month
end, Forming had 2,100 wreaths that were still in process that were 100 percent complete as to
material and 50 percent complete as to conversion. Assume Forming uses the weighted average
method of process costing. Costs in the Forming Department are as follows:
Beginning Work in Process Costs:
Material
$1,000
Conversion
1,500
Current Costs:
Material
$3,200
Conversion
5,045
The Decorating Department had 600 wreaths in process at the beginning of the month that were
80 percent complete as to material and 90 percent complete as to conversion. The department
had 300 units in ending Work in Process that were 50 percent complete as to material and 75
percent complete as to conversion. Decorating uses the FIFO method of process costing, and
costs associated with Decorating are:
Beginning WIP Inventory:
Transferred In
$1,170
Material
4,320
Conversion
6,210

Current Period:
Transferred In
?
Material
$67,745
Conversion
95,820
39.

How many units were transferred to Decorating during the month?
a.
b.
c.
d.

7,000
600
4,900
5,950

ANSWER:

c

EASY


Chapter 6

40.

Process Costing

What was the cost transferred out of Forming during the month?
a.
b.
c.
d.

$6,419
$5,341
$8,330
$8,245

ANSWER:
41.

MEDIUM

7,700
8,000
8,600
7,400

ANSWER:

b

DIFFICULT

Disregard your answer to question 39. Assume 8,000 units were transferred to
Decorating. Compute the number of equivalent units in Decorating for material.
a.
b.
c.
d.

8,000
8,450
8,330
7,970

ANSWER:
43.

c

Disregard your answer to question 39. Assume 8,000 units were transferred to
Decorating. Compute the number of equivalent units as to costs in Decorating for the
transferred-in cost component.
a.
b.
c.
d.

42.

6–13

d

MEDIUM

Disregard your answer to question 39. Assume 8,000 units were transferred to
Decorating. Compute the number of equivalent units in Decorating for conversion.
a.
b.
c.
d.

7,985
8,465
8,360
7,925

ANSWER:

a

MEDIUM


6–14

44.

Chapter 6

Disregard your answer to question 40. Assume that 8,000 units were transferred to
Decorating at a total cost of $16,000. What is the material cost per equivalent unit in

Decorating?
a.
b.
c.
d.

$8.80
$8.65
$8.50
$9.04

ANSWER:
45.

c

MEDIUM

Disregard your answer to question 40. Assume that 8,000 units were transferred to
Decorating at a total cost of $16,000. What is the conversion cost per equivalent unit in
Decorating?
a.
b.
c.
d.

$12.00
$12.78
$11.32
$11.46

ANSWER:
46.

Process Costing

a

MEDIUM

Assume the material cost per EUP is $8.00 and the conversion cost per EUP is $15 in
Decorating. What is the cost of completing the units in beginning inventory?
a.
b.
c.
d.

$11,940
$960
$1,380
$1,860

ANSWER:

d

MEDIUM


Chapter 6

Process Costing

6–15

Use the following information for questions 47–51.
BCW Co. adds material at the start to its production process and has the following information
available for November:
Beginning Work in Process Inventory
(40% complete as to conversion)
Started this period
Ending Work in Process Inventory
(25% complete as to conversion)
Transferred out
47.

29,500
39,000
36,500
34,500

ANSWER:

a

MEDIUM

Calculate equivalent units of production for material using FIFO.
a.
b.

c.
d.

36,800
32,000
39,000
37,125

ANSWER:
49.

2,500 units
?

Compute the number of units started and completed in November.
a.
b.
c.
d.

48.

7,000 units
32,000 units

b

EASY

Calculate equivalent units of production for conversion using FIFO.

a.
b.
c.
d.

34,325
30,125
37,125
39,000

ANSWER:

a

MEDIUM


6–16

50.

Chapter 6

Calculate equivalent units of production for material using weighted average.
a.
b.
c.
d.

34,325

32,000
37,125
39,000

ANSWER:
51.

Process Costing

d

EASY

Calculate equivalent units of production for conversion using weighted average.
a.
b.
c.
d.

39,925
37,125
34,325
38,375

ANSWER:

b

MEDIUM

Use the following information for questions 52–63.
Storey Co. adds material at the start of production. February information for the company
follows:
Beginning Work in Process Inventory
(45% complete as to conversion)
Started this period
Ending Work in Process Inventory
(80% complete as to conversion)
Beginning Work in Process Inventory Costs:
Material
$24,500
Conversion
68,905
Current Period Costs:
Material
Conversion
52.

$ 75,600
130,053

How many units must be accounted for?
a.
b.
c.
d.

128,200
138,200
130,000

118,200

ANSWER:

c

EASY

10,000 units
120,000 units
8,200 units


Chapter 6

53.

Process Costing

What is the total cost to account for?
a.
b.
c.
d.

$205,653
$299,058
$ 93,405
$274,558

ANSWER:
54.

b

EASY

What are the equivalent units for material using the weighted average method?
a.
b.
c.
d.

120,000
128,360
130,000
123,860

ANSWER:

c

EASY

What are the equivalent units for material using the FIFO method?
a.
b.
c.
d.

130,000
125,500
111,800
120,000

ANSWER:
57.

EASY

120,000
111,800
121,800
130,000

ANSWER:

56.

b

How many units were started and completed in the period?
a.
b.
c.
d.

55.

6–17

d

EASY

What are the equivalent units for conversion using the weighted average method?
a.
b.
c.
d.

128,360
123,440
130,000
120,000

ANSWER:

a

MEDIUM


6–18

58.

Chapter 6

What are the equivalent units for conversion using the FIFO method?

a.
b.
c.
d.

128,360
123,860
118,360
122,860

ANSWER:
59.

c

MEDIUM

What is the conversion cost per equivalent unit using the weighted average method?
a.
b.
c.
d.

$1.61
$1.55
$1.05
$1.01

ANSWER:

b

MEDIUM

What is the cost of units completed using the weighted average?
a.
b.
c.
d.

$266,742
$282,576
$278,400
$237,510

ANSWER:
62.

MEDIUM

$.58
$.62
$.77
$.82

ANSWER:

61.

b

What is the material cost per equivalent unit using the weighted average method?
a.
b.
c.
d.

60.

Process Costing

b

DIFFICULT

What is the conversion cost per equivalent unit using the FIFO method?
a.
b.
c.
d.

$1.05
$.95
$1.61
$1.55

ANSWER:

a

MEDIUM


Chapter 6

63.

Process Costing

6–19

What is the cost of all units transferred out using the FIFO method?
a.
b.
c.
d.

$204,624
$191,289
$287,004
$298,029

ANSWER:

c

DIFFICULT

Use the following information relating to I M Cute Co. for questions 64–73.
Beginning inventory (30% complete as to Material B

and 60% complete for conversion)
Started this cycle
Ending inventory (50% complete as to Material B
and 80% complete for conversion)

700 units
2,000 units
500 units

Beginning inventory costs:
Material A
$14,270
Material B
5,950
Conversion
5,640
Current Period costs:
Material A
Material B
Conversion

$40,000
70,000
98,100

Material A is added at the start of production, while Material B is added uniformly throughout
the process.
64.

Assuming a weighted average method of process costing, compute EUP units for

Materials A and B.
a.
b.
c.
d.

2,700 and 2,280, respectively
2,700 and 2,450, respectively
2,000 and 2,240, respectively
2,240 and 2,700, respectively

ANSWER:

b

EASY


6–20

65.

Chapter 6

Assuming a FIFO method of process costing, compute EUP units for Materials A and B.
a.
b.
c.
d.

2,700 and 2,280, respectively
2,700 and 2,450, respectively
2,000 and 2,240, respectively
2,450 and 2,880, respectively

ANSWER:
66.

MEDIUM

2,600
2,180
2,000
2,700

ANSWER:

a

MEDIUM

Assuming a FIFO method of process costing, compute EUP for conversion.
a.
b.
c.
d.

2,240
2,180
2,280

2,700

ANSWER:
68.

c

Assuming a weighted average method of process costing, compute EUP for conversion.
a.
b.
c.
d.

67.

Process Costing

b

MEDIUM

Assuming a weighted average method of process costing, compute the average cost per
unit for Material A.
a.
b.
c.
d.

$20.10
$20.00

$31.25
$31.00

ANSWER:

a

MEDIUM


Chapter 6

69.

Process Costing

Assuming a FIFO method of process costing, compute the average cost per EUP for
Material A.
a.
b.
c.
d.

$31.25
$20.10
$20.00
$31.00

ANSWER:
70.

MEDIUM

$20.10
$31.25
$20.00
$31.00

ANSWER:

b

MEDIUM

Assuming a weighted average method of process costing, compute the average cost per
EUP for Material B.
a.
b.
c.
d.

$20.00
$31.25
$20.10
$31.00

ANSWER:
72.

c

Assuming a FIFO method of process costing, compute the average cost per EUP for
Material B.
a.
b.
c.
d.

71.

6–21

d

MEDIUM

Assuming a FIFO method of process costing, compute the average cost per EUP for
conversion.
a.
b.
c.
d.

$45.50
$45.00
$43.03
$47.59

ANSWER:

b

MEDIUM


6–22

73.

Chapter 6

Process Costing

Assuming a weighted average method of process costing, compute the average cost per
EUP for conversion.
a.
b.
c.
d.

$39.90
$45.00
$43.03
$47.59

ANSWER:

a

DIFFICULT

THE FOLLOWING MULTIPLE CHOICE RELATES TO MATERIAL COVERED IN
THE APPENDIX OF THE CHAPTER.
74.

Which of the following is subtracted from weighted average EUP to derive FIFO EUP?
a.
b.
c.
d.

beginning WIP EUP completed in current period
beginning WIP EUP produced in prior period
ending WIP EUP not completed
ending WIP EUP completed

ANSWER:

b

EASY

SHORT ANSWER/PROBLEMS
1.

Discuss the assignment of costs to transferred-out inventories in both process costing
methods.
ANSWER: The assignment of costs in a process costing system first involves
determining total production costs. These costs are then assigned to units completed and
transferred out during the period and to the units in Work in Process Inventory at the

end of the period. To assign costs, the cost per equivalent unit must be established using
either the FIFO or weighted average method. The cost per EUP is then multiplied by the
number of equivalent units in the component being costed. Transferred-out costs using
the weighted average method are computed as the number of units transferred times the
total price per equivalent unit. When using FIFO, transferred-out units are computed as
follows: the costs in beginning WIP are added to the current period costs to complete
the units which sums to the total cost of beginning WIP; the units started and completed
are priced at current period costs; the total of the costs of beginning inventory and units
started and completed are then transferred out.
MEDIUM


Chapter 6

2.

Process Costing

6–23

Discuss process costing in a multidepartment atmosphere.
ANSWER: When a business has more than one department in its production process,
products are transferred from Department A to Department B and so on. As the products
are transferred from department to department so, too, must the costs be transferred.
When products are transferred, the units and
costs are treated as input material in
the next department. The new department may add additional material or may simply
add conversion costs and finish the products. The total cost of the products is a
cumulative total from all departments within the process.
MEDIUM

3.

Discuss standard costing as used in conjunction with process costing.
ANSWER: When standard costing is used in conjunction with process costing, the
costing procedure is simplified. Standard costing eliminates the calculation in each new
period of a new production cost because the standards are established as on going norms
for (at least) a one-year period of time. Standard costing in a process costing system is
essentially a FIFO system that permits variances to be recognized during the period.
MEDIUM

4.

What are two alternative calculations that can be used to either check an equivalent
units answer or to obtain the answer initially?
ANSWER: One alternative method of calculating equivalent units for weighted
average is to determine units transferred out and add to that the equivalent units of
ending work in process. Another alternative method of calculating equivalent units for
FIFO is to determine equivalent units of production under weighted average and
subtract the beginning work in process equivalent units that were completed in the last
period. Both of these methods may be used to “check” original answers.
MEDIUM


6–24

Chapter 6

Process Costing

Use the following information for questions 5–7.
VanBuren Co. has the following information available for November:
Beginning Work in Process Inventory
(25% complete as to conversion)
Started
Ending Work in Process Inventory
(30% complete as to conversion)

10,000 units
120,000 units
30,000 units

Beginning Work in Process Inventory Costs:
Material
$2,100
Conversion
2,030
Current Period Costs:
Material
Conversion

$ 33,000
109,695

All material is added at the start of production and all products completed are transferred out.


Chapter 6

5.

Process Costing

6–25

Prepare an equivalent units schedule using the (a) FIFO and (b) weighted average
method.
ANSWER:
VanBuren Company
Schedule of Equivalent Units for
Fifo and Weighted Average
November 30, 20XX
Beg. WIP
Started
To Acct. For

FIFO
10,000
120,000
130,000

Beg. WIP
S&C
End. WIP
Acct. For

10,000
90,000
30,000
130,000

(a)
BWIP
S&C
EWIP
EUP

FIFO
Mat.
0
90,000
30,000
120,000

CC
7,500
90,000
9,000
106,500

Beg. WIP
Started
To Acct. For

Weighted Average
10,000
120,000
130,000

TO

EI
Acct. for

100,000
30,000
130,000

(b) Weighted Average
Mat.
CC
TO
EI
EUP

100,000
30,000
130,000

100,000
9,000
109,000

MEDIUM
6.

Prepare a schedule showing the computation for cost per equivalent unit assuming the
(a) FIFO and (b) weighted average method.
ANSWER:
VanBuren Company
Schedule of Average Cost Per Unit

FIFO and Weighted Average
November 30, 20XX
(a) FIFO
Mat.
CC
$ 33,000
$ 109,695
 120,000
 106,500
$
.275
$
1.03
$1.305
MEDIUM

(b) Weighted Average
Mat.
CC
$ 35,100
$ 111,725
130,000
109,000
$
.27
$ 1.025
$1.295