Topic: Average and FIFO Costing

Cost Accounting PROBLEMS Pro CC Problem 1 A company's records show the following information concerning the work in process in a chemnical plant. a. Beginning inventory - 10,000 units (materials are 80% complete; conversion costs are 60% complete). b. Transferred out - 50,000 units c. Ending inventory - (materials are 50% complete, conversion costs are 40% complete). d. Started this month - 45,000 units. Requirements: 1. Compute the equivalent units for materials and conversion costs using FIFO. 2. Compute the equivalent units for materials and conversion costs using Average. Problem 2 A company's records show the following information concerning the work in process at an assembly plant: a. Beginning inventory - (materials are 60% complete; conversion costs are 75% complete) b. Transferred out - 50,000 units. c. Ending inventory - 10,000 units (materials are 60% complete; conversion costs are 80% complete. d. Started this month - 45,000 units. Requirements: 1. Compute the equivalent units for materials and conversion costs using FIFO. 2. Compute the equivalent units for materials and conversion costs using Average