PROCESS ACCOUNTING

Problem #1

C Company uses the FIFO method in its process costing system. The Assembly Department started the month with 5,800 units in its beginning work in process inventory that were 19% complete with respect to conversion costs. An additional 72,500 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 8,430 units in the ending work in process inventory of the Assembly Department that were 65% complete with respect to conversion costs.

Required: What were the equivalent units for conversion costs in the Assembly Department for the month?

Problem #2

E Company uses the FIFO method in its process costing system. The first processing department, the Welding Department, started the month with 13,330 units in its beginning work in process inventory. The units were 12% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $12,610. An additional 88,000 units were started into production during the month. There were 22,135 units in the ending work in process inventory of the Welding Department that were 32% complete with respect to conversion costs. A total of $806,000 in conversion costs were incurred in the department during the month.

Required: Determine the cost per equivalent unit for conversion costs.

Problem #3

In April, one of the processing departments at S Company had beginning work in process inventory of $27,417 and ending work in process inventory of $34,921. During the month, the cost of units transferred out from the department was $262,300. The company uses the FIFO method in its process costing system.

Required:

a) Determine the costs added to production in the department during the month.

b) Determine the cost accounted for during the month.