1. Kawanakerebaikemasen, Inc. uses the FIFO method of process costing. The firm has only one production department. It has the following cost per equivalent unit rates for the month of May.

   $15.50 direct materials per equivalent unit $20.25 conversion costs per equivalent unit

   Here are some additional details about the firm.

   • The firm began the period (i.e. May 1) with $15,000 of direct materials cost and $25,000 of conversion costs in beginning WIP.
   • Those beginning WIP costs were incurred for 1,000 beginning WIP units that were 50% complete with respect to conversion costs and direct materials.
   • The firm completed and transferred out a total of 59,000 units in May.

   What is the cost of units completed and transferred out for May (including direct materials costs and conversion costs)?

   	a.	$2,149,250
   	b.	$2,091,375
   	c.	$2,131,375
   	d.	$2,109,250

1. Phantom Enterprises adds direct materials at the beginning of the process. Data on direct materials for a department in the company are as follows.

   Production data (physical units):
   In process, beginning of July	20,000
   Started during July	120,000
   Completed and transferred out during July	125,000
   Manufacturing cost:
   Work in process, beginning	$ 39,000
   Direct materials used in July	$186,000

   The company uses the FIFO inventory method. How much of this department's direct materials cost goes to ending WIP (ignore conversion costs for this question)?

   	a.	$23,250
   	b.	$62,250
   	c.	$67,125
   	d.	$28,125

1. Direct materials are added uniformly throughout a process.

   Direct materials cost, BWIP	$50,000
   Direct materials per equivalent unit	$4.90
   Completed units (physical units)	100,750

   17,500 units were 35% complete with respect to direct materials in beginning WIP.

   Using the FIFO method, how much is the total direct materials cost for units completed and transferred out?

   	a.	$513,662.50
   	b.	$543,675
   	c.	$463,662.50
   	d.	$493,675