Process Costing SW

PROBLEM 1
Department II of Charity Manufacturing Company presents the following production data for the month of May, 2011:
Opening inventory, 3/8 completed 4, 000 units
Started in process 13, 000 units
Transferred 9, 000 units
Closing inventory, ½ completed 4, 000 units
¾ completed 4, 000 units
1. What are the equivalent units of production (conversion) for the month of May, 2011 under FIFO method?
2. What are the equivalent units of production (conversion) for the month of May, 2011 under average method?
PROBLEM 2
Department A is the first stage of Mann Company’s production cycle. The following information is available for conversion costs for
the month of April 2011:
UNITS
Work in process, beginning (60% complete) 20, 000
Started in April 340, 000
Completed in April and transferred to Department B 320, 000
Work in process, ending (40% complete) 40, 000
1. The equivalent units for the conversion cost calculation under FIFO method is
2. The equivalent units for the conversion cost calculation under average method is
PROBLEM 3
Bart Co. adds materials at the end of the process in Department M. the following information pertain to Department M’s work in
process during April:
UNITS
Work in process, April 1 (60% complete as to conversion cost) 3, 000
Completed 20, 000
Work in process, April 30 (75% complete as to conversion cost) 8, 000
3. What are the equivalent units of production (both for materials and conversion) for the month of April using FIFO method?
4. What are the equivalent units of production (both for materials and conversion) for the month of April using weighted
average method?
PROBLEM 4
Sussex Corporation’s production cycle starts in the Mixing Department. The following information is available for April:
UNITS
Work in process, April 1 (50% complete) 40, 000
Work in process, April 30 (60% complete) 25, 000
5. Materials are added at 55% stage of completion in the Mixing Department. What are the equivalent units of production for
the month of April under FIFO method?
6. What are the equivalent units of production for the month of April under average method?
PROBLEM 5
On September 30, work in process totalled 9, 000 units 60% complete (based on conversion costs added uniformly throughout the
department and material added at the start of the process). A total of 100, 000 units were transferred to the next department during
October. On October 31, a total of 8, 000 units 40% complete (based on conversion costs) were still in process in Department A.
7. Using the weighted-average cost flow method, what are the equivalent units to be used in the calculation of costs for
October?
PROBLEM 6
Richardson Company computed the flow of physical units completed for Department M for the month of March 2011 as follows:
Units completed:
From work in process on March 1, 2011 15, 000
From March production 45, 000
60, 000
Materials are added at the beginning of the process. The 12, 000 units of work in process at March 31, 2011, were 80% complete as
to conversion costs. The work in process at March 1, 2011, was 60% complete as to conversion costs.
8. Using the FIFO method, the equivalent units for March conversion costs were:
PROBLEM 7
Pure Spring Water Company bottles spring water. The spring water first undergoes filtration in Department 1 and is eventually
bottled in Department 2. A quantity schedule for May 2011 follows:
Department 1: Department 2:
Units started in process 110, 000Units received from Department 1 80, 000
Units transferred to Department 2 80, 000 Units transferred to finished stock 61, 400
Units in process, end 30, 000 Units in process, end 18, 600
Units in process at the end in both departments are 72%.

9. In Department 2, what is the equivalent production for conversion costs?
PROBLEM 8
The following data for the month of September were taken form the cost records of Department 1 of Pro-Life products which uses
process costing system:
Opening inventory of work in process:
Units – 500 (with all materials added and 50% of labor and overhead)
Cost – Materials 2, 400
Labor 1, 500
Factory overhead 760
Put into production:

Units – 5, 000
Costs - Materials 25, 100
Labor 19, 380
Factory overhead 14, 900
Completed and transferred – 4, 800 units

Ending inventory of work in process:
Units – 700 (with all materials, and 60% of labor and overhead)
10. The cost per equivalent unit (rounded to nearest centavo) under FIFO:
11. The cost per equivalent unit (rounded to nearest centavo) under weighted average:

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PROBLEM 1

Units in process at the end in both departments are 72%.

Put into production:

Completed and transferred – 4, 800 units

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