EQUIVALENT UNITS
1.) Bart Co. adds materials at the beginning of the process in Department M. The following
information pertain to Department m’s work-in process during April:
Work-in-process, April 1 (60% complete as to conversion costs) 3,000 units
Started in April 25,000 units
Completed 20,000 units
Work-in-process, April 30 (75% complete as to conversion costs) 8,000 units
What are the equivalent units of production for the month of April?
A.) Assuming Weighted Average Method
B.) Assuming FIFO Method
2.) 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:
Work-in-process, April 1 (60% complete as to conversion costs) 3,000 units
Started in April 25,000 units
Completed 20,000 units
Work-in-process, April 30 (75% complete as to conversion costs) 8,000 units
What are the equivalent units of production for the month of April?
A.) Assuming Weighted Average Method
B.) Assuming FIFO Method
3.) Materials are added at the start of the process in Cedar Company’s blending department, the
first stage of the production cycle. The following information is available for July.
Units
Work in process, July 1(60% complete as to conversion costs) 60,000
Started in July 150,000
Transferred to the next department 110,000
Lost in production 30,000
Work in process, July 31 (50% complete as to conversion costs) 70,000
Under Cedar’s cost accounting system, the costs incurred on the lost units are absorbed by the
remaining goods units. What are the equivalent units for the materials unit cost calculation?
A.) Under Weighted Average Method
B.) Under FIFO Method
COST ANALYSIS
1.) Barnett Company uses process costing system. The company adds materials at the beginning
of the process in Department M. Conversion costs were 75% complete with respect to the 4,000
units in work in process at May 1 and 50% complete with respect to the 6,000 units in work in
process at May 31. During May, 12,000 units were completed and transferred to the next
department. An analysis of the costs relating to work in process at May 1 and to production
activity for May follows:
Materials Conversion
Work in process 5/1 P13,800 P3,740
Costs added during May P42,000 P26,260
Assuming the company uses Weighted Average Method, the total cost per equivalent unit for
May was:
A.) Materials
B.) Conversion Cost
2.) Assuming the company uses FIFO Method, the total cost per equivalent unit for May was:
A.) Materials
B.) Conversion Cost
3.) Jersey Company has a process costing system in which it uses the weighted-average
method. The equivalent units for conversion costs for the month were 47,500 units. The
beginning work in process inventory consisted of 15,000 units, 60% complete with respect to
conversion costs. The ending work in process inventory consisted of 10,000 units, 75% complete
with respect to conversion costs. The number of units started during the month was:
4.) The following data were taken from the accounting records of the Mixing Department of
Kappa Company which uses the weighted-average method in its process costing system:
Percent Complete
with Respect to
Units Conversion
Beginning work in process inventory 3,300 40%
Transferred in from the prior department during March 67,000
Ending work in process inventory 5,600 30%
Beginning work in process inventory:
Cost P19,000
Units 30,000 units
Percentage completion with respect to materials 100%
Percentage completion with respect to conversion 60%
Units completed and transferred out 82,000 units
Cost per equivalent unit:
Material P1.50
Conversion P0.75
The cost of units transferred out was:
5.) Steven Company uses the FIFO method in its process costing system. The following data
were taken from the accounting records of a particular department for last month:
Beginning work in process inventory: (10,000 units; materials 100% complete,
conversion 60% complete) P17,500
Units completed and transferred out during the month 60,000 units
Cost per equivalent unit:
Material P2.50
Conversion P2.00
The cost of units transferred out of the department during the month is:
