FIN – Weighted Average and FIFO costing method Problems

December 14, 2020

QUESTION 1
1. During the current period, Department A finished and transferred 50,000 units to Department B. Of the 50,000 units, 20,000 were 1/5 complete at the beginning of the period and 30,000 were started and completed during the period. Also during the period, 10,000 units were started but brought only to a stage of being 3/5 completed. If the FIFO method is used and \$13,000 of overhead was charged to Department A during the period, how much overhead should be allocated to the ending goods in process inventory?
a. \$1,615.
b. \$3,250.
c. \$2,600.
d. \$2,500.
e. \$1,500.

QUESTION 2
1. A company uses a process cost accounting system. Its Sewing Department’s beginning inventory consisted of 50,000 units (1/4 complete with respect to direct labor and overhead). The Sewing Department started and finished 120,000 units this period. Its ending inventory consists of 40,000 units (1/4 complete with respect to direct labor and overhead). All direct materials are added at the beginning of the process. Under the Weighted Average inventory valuation method, what are the equivalent units of production for the Sewing Department for direct materials and for direct labor and overhead, respectively?
a. 210,000; 120,000
b. 210,000; 180,000
c. 167,500; 167,500
d. 160,000; 162,500
e. 160,000; 167,500

QUESTION 3
1. A department had 12,500 units which were 20% complete in beginning Goods in Process  Inventory. During the current period 60,000 units were transferred in. Ending Goods in Process Inventory was 15,000 units which were 70% complete. Assume this company uses the Weighted Average method of process costing and direct material is added uniformly throughout the process. What are the equivalent units produced with respect to direct material?
a. 65,500.
b. 57,500.
c. 37,000.
d. 47,500.
e. 68,000.

QUESTION 4
1. A department had 12,500 units which were 20% complete in beginning Goods in Process Inventory. During the current period 60,000 units were transferred in. Ending Goods in Process Inventory was 15,000 units which were 70% complete. Assume this company uses the FIFO method of process costing and direct material is added uniformly throughout the process. What are the equivalent units produced with respect to direct material?
a. 65,500.
b. 57,500.
c. 37,000.
d. 47,500.
e. 68,000.

QUESTION 5
1. During the current period, Department A finished and transferred 50,000 units to Department B. Of the 50,000 units, 20,000 were 1/5 complete at the beginning of the period and 30,000 were started and completed during the period. Also during the period, 10,000 units were started but brought only to a stage of being 3/5 completed. If the Weighted Average  method is used and \$14,000 of overhead was charged to Department A during the period, how much overhead should be allocated to the ending goods in process inventory?
a. \$1,615
b. \$3,250
c. \$2,600
d. \$2,500
e. \$1,500.

QUESTION 6
1. A company uses a process cost accounting system. Its Sewing Department’s beginning inventory consisted of 50,000 units (1/4 complete with respect to direct labor and overhead). The Sewing Department started and finished 120,000 units this period. Its ending inventory consists of 40,000 units (1/4 complete with respect to direct labor and overhead). All direct materials are added at the beginning of the process. Under FIFO what are the equivalent units of production for the Sewing Department for direct materials and for direct labor and overhead, respectively?
a. 210,000; 120,000
b. 210,000; 180,000
c. 167,500; 167,500
d. 160,000; 162,500
e. 160,000; 167,500