Variable Costing

Appendix 4A, FIFO Method
LO+: &'&O assi"n#ent of costs (App !A) LO,: &'&O Cost reconciliation (App !A)
LO%: &'&O equivalent units (App !A)
LO11: 1tep2/own #et.o/ (App !0)
LO!: WAC assi"n#ent of costs
(App !A)
LO1-: Direct #et.o/ (App !0)
LO$: WAC Cost reconciliation
3rofessional E4a# A/apte/
LO2: WAC equivalent units
LO3: WAC cost per E
LO*: &'&O cost per E
LO1: Cost flows
Difficulty
Question Type 1 2 3 ! $ % * + , 111 12 13 1! 1$ 1% 1* 1+ T6& T6& T6& T6& T6& Conceptual 56C 56C 56C 56C 56C 56C 56C 56C 56C 56C 56C 56C 56C
'D +6e: AT0!219ew:$6236,*C !6e:!21%% !6e:!21%! 9ew: *6116-*:D! %6e:!21* !6e:!2231 36e:!21$ 9ew:$62*6,*:E% 9ew:$62*6,*:5% 16e:32+ 9ew:$62*6,*:'% 9ew:$62*6,*:Q% !6e:!21,9ew:$62$6,*:C% 9ew:$62*6,*:8% 16e:32! !6e:!2222
7 5 E 5 5 7 7 5 5 5 5 5 5 5 5 5 5 E
4 4
4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4
Ori"in Davi/ 8eyes E;9; Aut.ors Aut.ors E;9; Aut.ors Aut.ors Aut.ors E;9; E;9; Aut.ors E;9; E;9; Aut.ors E;9; E;9; Aut.ors Aut.ors
C5A6C3A ori"in
4A-1

1, 221 22 !A2 1 !A2 2 !A2 3 !A2 ! !A2 $ !A2 % !A2 * !A2 + !A2 , !A2 1!A2 11 23 2!2 2* 2+2 3$ 3%2 3* 3+2 !! !$2 !* !+2 !, $-2 $1 $22 $3 $!2 $$ $%2 $* $+2 $, %%1 %2 %3 %! %$ 56C 56C 56C 56C 56C 5ultipart 56C 5ultipart 56C 5ultipart 56C 5ultipart 56C 5ultipart 56C 5ultipart 56C 5ultipart 56C 5ultipart 56C 5ultipart 56C 5ultipart 56C 5ultipart 56C 3ro=le# 3ro=le# 3ro=le# 3ro=le# 3ro=le# 3ro=le# 5 5 5 E 5 5 5 7 5 5 5 5 5 7 E25 E25 5 7 7 5 5 5 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 4 C 5 A 4 4 4 4 4 9ew:$62*6,*:<% 9ew:$62*6,*:O% 9ew:$62*6,*:T% *61262--* 1in"le 5C L1 *61262--* 1n"le 5C 51 !6e:!21,2 to 1,$ C5A:%6,$:3art3: Q12Q* LD,e:C7-!Q32$ 9ew 1161+6-5! 9ew 1161+6-3! 9ew 1161+6-Q! 9ew 1161+6-9! 9ew 1161+6-O! +6e:AT0!2!* to !+ *61262--* 5ulti 5C 81 *61262--* 5ulti 5C L1 36e:!23!21 9ew:$62+6,*:D% 9ew:$62+6,*:E% +6+62--! 3ro=le# <3 +6+62--! 3ro=le# 73 9ew:$62+6,*:&% E;9; E;9; E;9; E;9; E;9; Aut.ors Aut.ors Larry Deppe E;9; E;9; E;9; E;9; E;9; Davi/ 8eyes E;9; E;9; Aut.ors E;9; E;9; E;9; E;9; E;9; C5A:%6,$:3 art3:Q12Q*
4A-2

%% %* %+ %, **1 *2 *3 *! 3ro=le# 3ro=le# 3ro=le# 3ro=le# 3ro=le# 3ro=le# 3ro=le# 3ro=le# 3ro=le# 5 5 E E 5 5 E 5 5 4 4 4 4 4 4 4 4 4 +6+62--! 3ro=le# C3 +6+62--! 3ro=le# D3 +6+62--! 3ro=le# 83 +6+62--! 3ro=le# L3 +6+62--! 3ro=le# 33 +6+62--! 3ro=le# Q3 *61262--* 3ro=le# 1 *61262--* 3ro=le# >1 *61262--* 3ro=le# W1 E;9; E;9; E;9; E;9; E;9; E;9; E;9; E;9; E;9;
4A-3
Appendix 4A, FIFO Method Key

True / False Questions 1. When comparing the two proce co ting method !or the ame company, e"#i$a%ent #nit comp#ted #nder the FIFO method wi%% a%way &e %e than or e"#a% to e"#i$a%ent #nit comp#ted #nder the weighted-a$erage method. TRUE
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Learning O !ective: " Learning O !ective: # Level: $ar%
2. 'he co t per e"#i$a%ent #nit !or con$er ion co t wi%% a%way &e the ame #nder &oth the FIFO and the weighted-a$erage method i! there i no &eginning wor( in proce in$entory. TRUE
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Learning O !ective: & Learning O !ective: ' Level: Me%ium
3. )nder the FIFO proce co ting method, the e"#i$a%ent #nit o! prod#ction re%ate on%y to wor( done d#ring the c#rrent period. TRUE
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Learning O !ective: # Level: (as)
4A-4
4. 'he co t per e"#i$a%ent #nit #nder the FIFO method o! proce co ting i e"#a% to the co t o! &eginning wor( in proce in$entory p%# the co t added d#ring the period, a%% di$ided &y the e"#i$a%ent #nit o! prod#ction !or the period. FALSE
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Learning O !ective: ' Level: Me%ium
*. In the co t reconci%iation report, the co t acco#nted !or e"#a% the co t o! ending wor( in proce in$entory p%# the co t added d#ring the period. FALSE
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Learning O !ective: * Level: Me%ium
Multiple Choice Questions +. A%% prod#ction co t ha$e &een teadi%y ri ing in the ,onner -ompany !or e$era% period . 'he company maintain %arge wor( in proce in$entorie . ,onner -ompany. co t per e"#i$a%ent #nit comp#ted # ing the FIFO method wo#%d &e/ A. the ame a that comp#ted #nder the weighted-a$erage method. B. higher than that comp#ted #nder the weighted-a$erage method. -. %ower than that comp#ted #nder the weighted-a$erage method. ,. co#%d &e %ower than, the ame a , or higher than that comp#ted #nder the weighted-a$erage method.
AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Learning O !ective: & Learning O !ective: ' Level: $ar%
4A-*
0. On Apri% 1, 1i tron -orporation had 12,222 #nit o! wor( in proce in ,epartment A that were 1223 comp%ete with re pect to materia% co t and 223 comp%ete with re pect to con$er ion co t . ,#ring Apri%, 42,222 #nit were tarted in ,epartment A and 4*,222 #nit were comp%eted and tran !erred to ,epartment 5. 'he wor( in proce at the end o! Apri% wa 1223 comp%ete with re pect to materia% co t and 423 comp%ete with re pect to con$er ion co t . 5y what amo#nt wo#%d the e"#i$a%ent #nit !or con$er ion co t !or Apri% di!!er i! the FIFO method were # ed in tead o! the weighted-a$erage method6 A. 12,222 decrea e 5. 4,222 decrea e -. 4,222 decrea e D. 2,222 decrea e
,i!!erence 7 40,222 e"#i$a%ent #nit # ing Weighted A$erage - 4*,222 e"#i$a%ent #nit # ing FIFO 7 2,222 e"#i$a%ent #nit decrea e
4A-+

AACSB: Anal)tic AICPA BB: Critical Thinking AICPA FN: Measurement Learning O !ective: " Learning O !ective: # Level: $ar%
4. -reer -ompany # e the FIFO method in it proce co ting y tem. ,epartment A had 22,222 #nit in proce at the &eginning o! 8an#ary, that were 423 comp%ete with re pect to con$er ion co t . A%% materia% are added at the &eginning o! the proce in ,epartment A. 'he 8an#ary 1 wor( in proce in$entory in ,epartment A contained 912,222 in materia% co t and 911,+22 in con$er ion co t. ,#ring 8an#ary, materia% co t were 92.*2 per e"#i$a%ent #nit and con$er ion co t were 91.*2 per e"#i$a%ent #nit. A%% o! the #nit in the &eginning wor( in proce in$entory were comp%eted and tran !erred o#t d#ring the month. What wa the tota% co t attached to the e #nit when they were tran !erred to the next department6 A. 93:,+22 5. 933,+22 -. 94*,+22 ,. 930,+22
AACSB: Anal)tic AICPA BB: Critical Thinking AICPA FN: Measurement Learning O !ective: # Learning O !ective: ' Learning O !ective: + Level: Me%ium
4A-0
:. ;dward -ompany # e the FIFO method in it proce co ting y tem. 'he !ir t proce ing department, the We%ding ,epartment, tarted the month with 12,222 #nit in it &eginning wor( in proce in$entory that were 423 comp%ete with re pect to con$er ion co t . 'he con$er ion co t in thi &eginning wor( in proce in$entory wa 912,422. An additiona% :4,222 #nit were tarted into prod#ction d#ring the month. 'here were 14,222 #nit in the ending wor( in proce in$entory o! the We%ding ,epartment that were 423 comp%ete with re pect to con$er ion co t . A tota% o! 924+,042 in con$er ion co t were inc#rred in the department d#ring the month. What wo#%d &e the co t per e"#i$a%ent #nit !or con$er ion co t 6 <=o#nd o!! to three decima% p%ace .> A. 92.442 5. 93.222 C. 92.:*2 ,. 93.2*2
AACSB: Anal)tic AICPA BB: Critical Thinking AICPA FN: Measurement Learning O !ective: # Learning O !ective: ' Level: Me%ium
4A-4
12. Ma%a$iya -orporation # e the FIFO method in it proce co ting y tem. Operating data !or the -a ting ,epartment !or the month o! ?eptem&er appear &e%ow/
According to the company. record , the con$er ion co t in &eginning wor( in proce in$entory wa 9+3,124 at the &eginning o! ?eptem&er. Additiona% con$er ion co t o! 9+*4,242 were inc#rred in the department d#ring the month. What wo#%d &e the co t per e"#i$a%ent #nit !or con$er ion co t !or ?eptem&er6 <=o#nd o!! to three decima% p%ace .> A. 94.2+2 5. 9:.242 -. 9:.240 D. 9:.422
4A-:
11. M#(%#( -ompany # e the FIFO method in it proce co ting y tem. 'he con$er ion co t !or the month o! Apri% i 9*.22 per e"#i$a%ent #nit and the materia% co t i 92.:2 per e"#i$a%ent #nit. At the &eginning o! the month, 1,222 #nit were in proce that were 1223 comp%ete with re pect to materia% and 323 comp%ete with re pect to con$er ion, with a tota% co t at that point o! 92,422. I! the e #nit are !#%%y comp%ete &y the end o! the month, their tota% co t wi%% &e/ A. 93,*22 5. 93,:22 C. 9*,:22 ,. 94,222
AICPA BB: Critical Thinking AICPA FN: Measurement Learning O !ective: # Learning O !ective: ' Level: Me%ium
4A-12
12. I mai% -orporation # e the FIFO method in it proce co ting y tem. 'he !ir t proce ing department, the Forming ,epartment, tarted the month with 21,222 #nit in it &eginning wor( in proce in$entory that were 123 comp%ete with re pect to con$er ion co t . 'he con$er ion co t in thi &eginning wor( in proce in$entory wa 9+,2:2. An additiona% :4,222 #nit were tarted into prod#ction d#ring the month and :*,222 #nit were comp%eted and tran !erred to the next proce ing department. 'here were 24,222 #nit in the ending wor( in proce in$entory o! the Forming ,epartment that were 323 comp%ete with re pect to con$er ion co t . A tota% o! 92+:,2+: in con$er ion co t were inc#rred in the department d#ring the month. What wo#%d &e the co t per e"#i$a%ent #nit !or con$er ion co t !or the month6 <=o#nd o!! to three decima% p%ace .> A. 92.:22 5. 92.044 C. 92.+:2 ,. 92.314
4A-11
13. @#i%% -orporation # e the FIFO method in it proce co ting y tem. Operating data !or the -#tting ,epartment !or the month o! March appear &e%ow/
According to the company. record , the con$er ion co t in &eginning wor( in proce in$entory wa 9*,214 at the &eginning o! March. Additiona% con$er ion co t o! 9422,+44 were inc#rred in the department d#ring the month. What wo#%d &e the co t per e"#i$a%ent #nit !or con$er ion co t !or March6 <=o#nd o!! to three decima% p%ace .> A. 94.413 B. 90.*4+ -. 90.*34 ,. 90.022
4A-12
14. =oger -ompany # e the FIFO method in it proce co ting y tem. 'he !o%%owing data are ta(en !rom the acco#nting record o! a partic#%ar department !or 8#ne/
'he co t o! the 0*,222 #nit tran !erred o#t o! the department d#ring 8#ne i / A. 91*1,2*2 B. 914*,2*2 -. 9131,*22 ,. 91+4,0*2
4A-13

AACSB: Anal)tic AICPA BB: Critical Thinking AICPA FN: Measurement Learning O !ective: # Learning O !ective: + Level: Me%ium
1*. -ap#% -ompany # e the FIFO method in it proce co ting y tem. 'he A em&%y ,epartment tarted the month with *,222 #nit in it &eginning wor( in proce in$entory that were *23 comp%ete with re pect to con$er ion co t . An additiona% 04,222 #nit were tran !erred in !rom the prior department d#ring the month to &egin proce ing in the A em&%y ,epartment. 'here were 1*,222 #nit in the ending wor( in proce in$entory o! the A em&%y ,epartment that were +23 comp%ete with re pect to con$er ion co t . What were the e"#i$a%ent #nit !or con$er ion co t in the A em&%y ,epartment !or the month6 A. 44,222 B. 02,*22 -. 03,222 ,. +4,222
AACSB: Anal)tic AICPA BB: Critical Thinking AICPA FN: Measurement Learning O !ective: # Level: Me%ium
4A-14
1+. Ket -orporation # e the FIFO method in it proce co ting y tem. Operating data !or the ;name%ing ,epartment !or the month o! May appear &e%ow/
What were the e"#i$a%ent #nit !or con$er ion co t in the ;name%ing ,epartment !or May6 A. 43,1:2 5. 42,+22 -. 43,422 ,. 44,422
4A-1*
10. Win(%e -ompany # e the FIFO method in it proce co ting y tem. At the &eginning o! March, the wor( in proce in$entory in the 5%ending Aroce ing -enter con i ted o! *,222 #nit , :23 comp%ete with re pect to con$er ion co t . At the end o! the month, the wor( in proce in$entory con i ted o! 2,222 #nit that were +23 comp%ete with re pect to con$er ion co t . I! 12,222 #nit were tran !erred to the next proce ing center d#ring the month, the e"#i$a%ent #nit !or con$er ion co t were/ A. +,022 #nit 5. 11,022 #nit -. 12,322 #nit ,. 13,222 #nit
4A-1+
14. Frei n -orporation # e the FIFO method in it proce co ting y tem. ,epartment A i the !ir t proce ing department the company. prod#ction proce . 'he !o%%owing in!ormation pertain to con$er ion co t in 8#ne !or that department/
'he e"#i$a%ent #nit !or con$er ion co t are/ A. 1+2,222 B. 1+4,222 -. 142,222 ,. 10+,222
AACSB: Anal)tic AICPA BB: Critical Thinking AICPA FN: Measurement Learning O !ective: # Level: (as)
4A-10
1:. Ba%%i -orporation # e the FIFO method in it proce co ting y tem. 'he Brinding ,epartment tarted the month with 12,222 #nit in it &eginning wor( in proce in$entory that were 323 comp%ete with re pect to con$er ion co t . An additiona% 03,222 #nit were tran !erred in !rom the prior department d#ring the month to &egin proce ing in the Brinding ,epartment. ,#ring the month ++,222 #nit were comp%eted in the Brinding ,epartment and tran !erred to the next proce ing department. 'here were 10,222 #nit in the ending wor( in proce in$entory o! the Brinding ,epartment that were 423 comp%ete with re pect to con$er ion co t . What were the e"#i$a%ent #nit !or con$er ion co t in the Brinding ,epartment !or the month6 A. +:,422 5. 42,222 -. 02,422 ,. ++,222
4A-14
22. OCdemir -ompany # e the FIFO method in it proce co ting y tem. Operating data !or the 5raCing ,epartment !or the month o! Do$em&er appear &e%ow/
What were the e"#i$a%ent #nit !or con$er ion co t in the 5raCing ,epartment !or Do$em&er6 A. *0,*22 B. *+,+42 -. *+,122 ,. *:,222
4A-1:
21. 'eniche!! -orporation # e the FIFO method in it proce co ting y tem. Operating data !or the -#ring ,epartment !or the month o! March appear &e%ow/
According to the company. record , the con$er ion co t in &eginning wor( in proce in$entory wa 912,2*2 at the &eginning o! March. 'he co t per e"#i$a%ent #nit !or con$er ion co t !or March wa 92.42. 1ow m#ch con$er ion co t wo#%d &e a igned to the #nit comp%eted and tran !erred o#t o! the department d#ring March6 A. 9134,442 5. 9110,+22 C. 913*,2:2 ,. 912*,242
4A-22
AACSB: Anal)tic AICPA BB: Critical Thinking AICPA FN: Measurement Learning O !ective: + Level: Me%ium
4A-21
22. In Do$em&er, one o! the proce ing department at =#%%o -orporation had &eginning wor( in proce in$entory o! 923,222 and ending wor( in proce in$entory o! 932,222. ,#ring the month, 92+0,222 o! co t were added to prod#ction and the co t o! #nit tran !erred o#t !rom the department wa 92*4,222. 'he company # e the FIFO method in it proce co ting y tem. In the department. co t reconci%iation report !or Do$em&er, the tota% co t to &e acco#nted !or wo#%d &e/ A. 9*42,222 5. 9**0,222 C. 92:2,222 ,. 9**,222 'ota% co t to &e acco#nted !or/
AACSB: Anal)tic AICPA BB: Critical Thinking AICPA FN: Measurement Learning O !ective: * Level: (as)
23. In ?eptem&er, one o! the proce ing department at 5ec(a -orporation had ending wor( in proce in$entory o! 923,222. ,#ring the month, 93+2,222 o! co t were added to prod#ction and the co t o! #nit tran !erred o#t !rom the department wa 9302,222. 'he company # e the FIFO method in it proce co ting y tem. In the department. co t reconci%iation report !or ?eptem&er, the tota% co t acco#nted !or wo#%d &e/ A. 9*+,222 B. 93:*,222 -. 90:2,222 ,. 90*0,222
AACSB: Anal)tic AICPA BB: Critical Thinking AICPA FN: Measurement Learning O !ective: * Level: Me%ium
4A-22
,etai% o! the man#!act#ring acti$ity in Amy -ompany. A em&%y ,epartment !or the month o! ,ecem&er are gi$en &e%ow/
A%% materia% are added at the &eginning o! proce ing in the A em&%y ,epartment.
24. 'he e"#i$a%ent #nit !or %a&or and o$erhead !or the month, # ing the FIFO method, i / A. :2,222 5. 02,222 -. 42,222 D. 04,222
4A-23
2*. 'he e"#i$a%ent #nit !or materia% !or the month, # ing the FIFO method, i / A. 42,222 5. 02,222 -. 04,222 ,. :2,222
2+. 'he e"#i$a%ent #nit !or %a&or and o$erhead !or the month, # ing the weighted-a$erage method, i / A. 1+2,222 5. 42,222 C. 41,222 ,. 04,222
AACSB: Anal)tic AICPA BB: Critical Thinking AICPA FN: Measurement Learning O !ective: " Level: Me%ium
4A-24
20. 'he e"#i$a%ent #nit !or materia% !or the month, # ing the weighted-a$erage method, i / A. 41,222 B. :2,222 -. 02,222 ,. 42,222
AACSB: Anal)tic AICPA BB: Critical Thinking AICPA FN: Measurement Learning O !ective: " Level: Me%ium
Kim&eth Man#!act#ring ma(e ,# t ,en ity ?en or <,,?>, a a!ety de$ice !or the mining ind# try. 'he company # e a proce co ting y tem and ha on%y a ing%e proce ing department. 'he !o%%owing in!ormation pertain to operation !or the month o! May/
'he &eginning wor( in proce in$entory wa +23 comp%ete with re pect to materia% and 223 comp%ete with re pect to con$er ion co t . 'he ending wor( in proce in$entory wa :23 comp%ete with re pect to materia% and 423 comp%ete with re pect to con$er ion co t . 'he co t were a !o%%ow /
4A-2*

24. ) ing the FIFO method, the e"#i$a%ent #nit !or May !or materia% are/ A. 42,422 #nit B. 124,222 #nit -. 120,222 #nit ,. 124,222 #nit
AACSB: Anal)tic AICPA BB: Critical Thinking AICPA FN: Measurement Learning O !ective: # Level: Me%ium S,urce: CMA- a%a.te%
4A-2+
2:. ) ing the FIFO method, the e"#i$a%ent #nit !or May !or con$er ion co t are/ A. 4*,+22 #nit 5. 44,422 #nit -. :*,222 #nit D. :4,422 #nit
AACSB: Anal)tic AICPA BB: Critical Thinking AICPA FN: Measurement Learning O !ective: # Level: Me%ium S,urce: CMA- a%a.te%
4A-20
32. ) ing the FIFO method, the co t per e"#i$a%ent #nit o! materia% !or May i c%o e t to/ A. 94.12 B. 94.*2 -. 94.+2 ,. 94.42
AACSB: Anal)tic AICPA BB: Critical Thinking AICPA FN: Measurement Learning O !ective: # Learning O !ective: ' Level: Me%ium S,urce: CMA- a%a.te%
4A-24
31. ) ing the FIFO method, the co t per e"#i$a%ent #nit o! con$er ion co t !or May i c%o e t to/ A. 9*.+* B. 9*.43 -. 9+.22 ,. 9+.22
AACSB: Anal)tic AICPA BB: Critical Thinking AICPA FN: Measurement Learning O !ective: # Learning O !ective: ' Level: Me%ium S,urce: CMA- a%a.te%
4A-2:
32. ) ing the FIFO method, the tota% co t o! #nit in the ending wor( in proce c%o e t to/ A. 91*3,222 5. 91*4,422 -. 91**,322 ,. 91*0,222
in$entory i
AACSB: Anal)tic AICPA BB: Critical Thinking AICPA FN: Measurement Learning O !ective: # Learning O !ective: ' Learning O !ective: + Level: Me%ium S,urce: CMA- a%a.te%
4A-32
33. ) ing the weighted-a$erage method, the co t per e"#i$a%ent #nit o! materia% !or May i c%o e t to/ A. 94.12 5. 94.*2 C. 94.+2 ,. 9*.23
AACSB: Anal)tic AICPA BB: Critical Thinking AICPA FN: Measurement Learning O !ective: & Level: Me%ium S,urce: CMA- a%a.te%
4A-31
34. ) ing the weighted-a$erage method, the co t per e"#i$a%ent #nit o! con$er ion co t !or May i c%o e t to/ A. 9*.+* 5. 9*.43 C. 9+.22 ,. 9+.41
AACSB: Anal)tic AICPA BB: Critical Thinking AICPA FN: Measurement Learning O !ective: & Level: Me%ium S,urce: CMA- a%a.te%
4A-32
3*. ) ing the weighted-a$erage method, the tota% co t o! the #nit in ending wor( in proce in$entory i c%o e t to/ A. 91*+,:+2 5. 94+,422 -. 91*3,:+2 ,. 91*4,422
AACSB: Anal)tic AICPA BB: Critical Thinking AICPA FN: Measurement Learning O !ective: & Learning O !ective: / Level: Me%ium S,urce: CMA- a%a.te%
4A-33
-herrington -ompany # e a proce co ting y tem. For May, the month E# t comp%eted, the &eginning wor( in proce in$entory con i ted o! *2,222 #nit which were +23 comp%ete with re pect to con$er ion co t . 'he ending in$entory !or the month wa 223 comp%ete with re pect to con$er ion co t . A #mmary o! co t data !or the month !o%%ow /
3+. A #ming that -herrington -ompany # e the weighted-a$erage method, what i the co t per e"#i$a%ent #nit !or con$er ion co t !or May to the neare t who%e cent6 A. 94.1: 5. 94.22 C. 93.+4 ,. 93.43
AACSB: Anal)tic AICPA BB: Critical Thinking AICPA FN: Measurement Learning O !ective: & Level: $ar%
4A-34
30. A #ming that -herrington -ompany # e the FIFO method, what i the co t per e"#i$a%ent #nit !or con$er ion co t !or May to the neare t cent6 A. 94.31 5. 93.4: -. 94.2: D. 94.11
AACSB: Anal)tic AICPA BB: Critical Thinking AICPA FN: Measurement Learning O !ective: ' Level: $ar%
4A-3*
Mo#%gadi -orporation # e the FIFO method in it proce co ting y tem. ,ata concerning the !ir t proce ing department !or the mo t recent month are %i ted &e%ow/
Dote/ Fo#r an wer may di!!er !rom tho e o!!ered &e%ow d#e to ro#nding error. In a%% ca e , e%ect the an wer that i the c%o e t to the an wer yo# comp#ted. 'o red#ce ro#nding error, carry o#t a%% comp#tation to at %ea t three decima% p%ace .
4A-3+

34. What are the e"#i$a%ent #nit !or materia% !or the month in the !ir t proce ing department6 A. 1,242 B. :,34* -. 12,422 ,. 4,122
4A-30
3:. What are the e"#i$a%ent #nit !or con$er ion co t !or the month in the !ir t proce ing department6 A. 442 5. 12,422 C. :,*0* ,. 4,122
4A-34
42. 'he co t per e"#i$a%ent #nit !or materia% !or the month in the !ir t proce ing department i c%o e t to/ A. 923.24 B. 921.43 -. 923.:+ ,. 91:.02
4A-3:
41. 'he co t per e"#i$a%ent #nit !or con$er ion co t !or the !ir t department !or the month i c%o e t to/ A. 930.40 5. 93:.0+ -. 943.41 ,. 941.22
4A-42
42. 'he co t o! a comp%eted #nit tran !erred o#t o! the department i c%o e t to/ A. 9+3.24 B. 9*:.02 -. 9*+.2+ ,. 901.:4
4A-41
43. 'he tota% co t tran !erred !rom the !ir t proce ing department to the next proce ing department d#ring the month i c%o e t to/ A. 9*2+,:+0 5. 9*43,222 -. 9+22,:21 ,. 9*+0,*22
4A-42
4A-43
44. 'he co t o! ending wor( in proce in$entory in the !ir t proce ing department according to the company. co t y tem i c%o e t to/ A. 9:*,*23 B. 9*+,231 -. 9*2,*34 ,. 9+2,2:2
4A-44
Aratt -orporation # e the FIFO method in it proce co ting y tem. ,ata concerning the !ir t proce ing department !or the mo t recent month are %i ted &e%ow/
4A-4*

4*. What are the e"#i$a%ent #nit !or materia% !or the month in the !ir t proce ing department6 A. 12,322 5. **2 C. :,*02 ,. 4,:22
4A-4+
4+. 'he co t per e"#i$a%ent #nit !or con$er ion co t !or the !ir t department !or the month i c%o e t to/ A. 944.14 5. 94+.42 -. 944.:4 D. 94+.+*
4A-40
40. 'he tota% co t tran !erred !rom the !ir t proce ing department to the next proce ing department d#ring the month i c%o e t to/ A. 9+2:,324 5. 9+*2,*22 -. 9+3*,:22 ,. 9+:+,4**
4A-44
4A-4:
@tech -orporation # e the FIFO method in it proce co ting y tem. ,ata concerning the !ir t proce ing department !or the mo t recent month are %i ted &e%ow/
44. 1ow many #nit were tarted AD, comp%eted d#ring the month in the !ir t proce ing department6 A. 4,:22 5. :,*22 -. 4,122 D. 0,*22
4A-*2
4:. 'he co t per e"#i$a%ent #nit !or con$er ion co t !or the !ir t department !or the month i c%o e t to/ A. 934.02 5. 933.*2 -. 93+.+0 D. 931.:2
4A-*1
Doda -orporation # e the FIFO method in it proce co ting y tem. ,ata concerning the !ir t proce ing department !or the mo t recent month are %i ted &e%ow/
4A-*2

*2. What are the e"#i$a%ent #nit !or materia% !or the month in the !ir t proce ing department6 A. +32 B. +,+0* -. 0,222 ,. +,222
4A-*3
*1. 'he co t per e"#i$a%ent #nit !or con$er ion co t !or the !ir t department !or the month i c%o e t to/ A. 932.*+ 5. 920.:2 -. 924.44 D. 920.2:
4A-*4
O man -orporation # e the FIFO method in it proce co ting y tem. ,ata concerning the !ir t proce ing department !or the mo t recent month are %i ted &e%ow/
4A-**

*2. What are the e"#i$a%ent #nit !or con$er ion co t !or the month in the !ir t proce ing department6 A. 4,122 5. *+2 C. 4,43* ,. 12,222
4A-*+
*3. 'he co t per e"#i$a%ent #nit !or materia% !or the month in the !ir t proce ing department i c%o e t to/ A. 924.*0 B. 92+.*0 -. 920.40 ,. 923.:0
4A-*0
'he !o%%owing in!ormation re%ate to the Mixing ,epartment o! Gag%a$ Arod#ct -ompany !or the month o! 8#ne. Gag%a$ # e a FIFO proce co ting y tem.
*4. What are the Mixing ,epartment. e"#i$a%ent #nit re%ated to materia% !or 8#ne6 A. 0+,222 B. 0:,222 -. 40,222 ,. 44,222
AACSB: Anal)tic AICPA BB: Critical Thinking AICPA FN: Measurement Learning O !ective: # Level: $ar%
4A-*4
**. What are the Mixing ,epartment. e"#i$a%ent #nit re%ated to con$er ion co t !or 8#ne6 A. 04,322 5. 41,322 -. 42,322 ,. 44,022
AACSB: Anal)tic AICPA BB: Critical Thinking AICPA FN: Measurement Learning O !ective: # Level: $ar%
4A-*:
In 8#%y, one o! the proce ing department at Keen -orporation had &eginning wor( in proce in$entory o! 91:,222 and ending wor( in proce in$entory o! 914,222. ,#ring the month, the co t o! #nit tran !erred o#t !rom the department wa 921+,222. 'he company # e the FIFO method in it proce co ting y tem.
*+. In the department. co t reconci%iation report !or 8#%y, the co t added to prod#ction in the department wo#%d &e/ A. 9210,222 5. 91:4,222 -. 91:0,222 D. 921*,222
4A-+2
*0. In the department. co t reconci%iation report !or 8#%y, the tota% co t acco#nted !or wo#%d &e/ A. 930,222 5. 944:,222 C. 9234,222 ,. 94+4,222
4A-+1
In 8an#ary, one o! the proce ing department at ?e #m -orporation had &eginning wor( in proce in$entory o! 910,222. ,#ring the month, 9102,222 o! co t were added to prod#ction and the co t o! #nit tran !erred o#t !rom the department wa 9104,222. 'he company # e the FIFO method in it proce co ting y tem.
*4. In the department. co t reconci%iation report !or 8an#ary, the co t o! ending wor( in proce in$entory wo#%d &e/ A. 910,222 5. 9*,222 C. 911,222 ,. 923,222
4A-+2
*:. In the department. co t reconci%iation report !or 8an#ary, the tota% co t to &e acco#nted !or wo#%d &e/ A. 93+1,222 B. 914:,222 -. 924,222 ,. 9304,222
4A-+3
Essay Questions +2. ?harp -ompany ha a proce co ting y tem. 'he !o%%owing data re%ate to the company. Mixing ,epartment !or a recent month/
A%% materia% are added at the &eginning o! the Mixing proce . =e"#ired/ a. -omp#te the e"#i$a%ent #nit &. -omp#te the e"#i$a%ent #nit c. -omp#te the e"#i$a%ent #nit method. d. -omp#te the e"#i$a%ent #nit method. o! prod#ction !or materia% # ing the FIFO method. o! prod#ction !or con$er ion # ing the FIFO method. o! prod#ction !or materia% # ing the weighted-a$erage o! prod#ction !or con$er ion # ing the weighted-a$erage
AACSB: Anal)tic AICPA BB: Critical Thinking AICPA FN: Measurement Learning O !ective: " Learning O !ective: # Level: Me%ium
4A-+4
+1. ,ame in Inc. # e the FIFO method in it proce co ting y tem. 'he !o%%owing data concern the operation o! the company. !ir t proce ing department !or a recent month.
=e"#ired/ ) ing the FIFO method/ a. ,etermine the e"#i$a%ent #nit o! prod#ction !or materia% and con$er ion co t . &. ,etermine the co t per e"#i$a%ent #nit !or materia% and con$er ion co t . c. ,etermine the co t o! ending wor( in proce in$entory. d. ,etermine the co t o! #nit tran !erred o#t o! the department d#ring the month.
4A-+*

FIFO method/
AACSB: Anal)tic AICPA BB: Critical Thinking AICPA FN: Measurement Learning O !ective: # Learning O !ective: ' Learning O !ective: + Level: $ar%
4A-++
+2. ;p tein Inc. # e the FIFO method in it proce co ting y tem. 'he !o%%owing data concern the operation o! the company. !ir t proce ing department !or a recent month.
=e"#ired/ ) ing the FIFO method/ a. ,etermine the e"#i$a%ent #nit o! prod#ction !or materia% and con$er ion co t . &. ,etermine the co t per e"#i$a%ent #nit !or materia% and con$er ion co t . c. ,etermine the co t o! ending wor( in proce in$entory. d. ,etermine the co t o! #nit tran !erred o#t o! the department d#ring the month.
4A-+0

FIFO method/
AACSB: Anal)tic AICPA BB: Critical Thinking AICPA FN: Measurement Learning O !ective: # Learning O !ective: ' Learning O !ective: + Level: $ar%
4A-+4
+3. A#g# te -orporation # e the FIFO method in it proce pertain to it A em&%y ,epartment !or Octo&er.
co ting. 'he !o%%owing data
=e"#ired/ -omp#te the e"#i$a%ent #nit o! prod#ction !or &oth materia% and con$er ion co t !or the A em&%y ,epartment !or Octo&er # ing the FIFO method. FIFO method/
4A-+:
+4. 'he !o%%owing data pertain to the Mi%%ing ,epartment o! 1erd -orporation !or ?eptem&er. 'he company # e the FIFO method in it proce co ting.
=e"#ired/ -omp#te the e"#i$a%ent #nit o! prod#ction !or &oth materia% and con$er ion co t !or the Mi%%ing ,epartment !or ?eptem&er # ing the FIFO method. FIFO method/
4A-02
+*. Fryer Inc. # e the FIFO method in it proce co ting y tem. 'he !o%%owing data concern the operation o! the company. !ir t proce ing department !or a recent month.
=e"#ired/ ) ing the FIFO method, determine the e"#i$a%ent #nit o! prod#ction !or materia% and con$er ion co t . FIFO method/
4A-01
++. Ha we%% -orporation # e the FIFO method in it proce pertain to it A em&%y ,epartment !or May.
co ting. 'he !o%%owing data
=e"#ired/ ,etermine the e"#i$a%ent #nit o! prod#ction !or the A em&%y ,epartment !or May # ing the FIFO method. FIFO method/
4A-02
+0. 'he !o%%owing data ha$e &een pro$ided &y Heon -orporation !or the -irc#it Arep ,epartment. 'he company # e the FIFO method in it proce co ting.
=e"#ired/ ,etermine the e"#i$a%ent #nit o! prod#ction !or the -irc#it Arep ,epartment !or ,ecem&er # ing the FIFO method. FIFO method/
4A-03
+4. Ah%er -orporation # e the FIFO method in it proce co ting. 'he !o%%owing data concern the company. A em&%y ,epartment !or the month o! Octo&er.
=e"#ired/ -omp#te the co t per e"#i$a%ent #nit !or the A em&%y ,epartment !or Octo&er # ing the FIFO method. FIFO method/
AACSB: Anal)tic AICPA BB: Critical Thinking AICPA FN: Measurement Learning O !ective: ' Level: (as)
4A-04
+:. =a&in -orporation # e the FIFO method in it proce co ting. 'he !o%%owing data concern the company. Mixing ,epartment !or the month o! A#g# t.
=e"#ired/ -omp#te the co t per e"#i$a%ent #nit !or materia% and con$er ion !or the Mixing ,epartment !or A#g# t # ing the FIFO method. FIFO method/
AACSB: Anal)tic AICPA BB: Critical Thinking AICPA FN: Measurement Learning O !ective: ' Level: (as)
4A-0*
02. 5#!!ord -orporation # e the FIFO method in it proce co ting y tem. 'he !o%%owing data concern the company. A em&%y ,epartment !or the month o! ?eptem&er.
=e"#ired/ ,etermine the co t o! ending wor( in proce in$entory and the co t o! #nit tran !erred o#t o! the department d#ring ?eptem&er # ing the FIFO method. FIFO method/
4A-0+
01. 'he !o%%owing data ha &een pro$ided &y He er Inc., a company that # e the FIFO method in it proce co ting y tem. 'he data concern the company. ?haping ,epartment !or the month o! 8#ne.
=e"#ired/ ,etermine the co t o! ending wor( in proce in$entory and the co t o! the #nit tran !erred o#t o! the department d#ring 8#ne # ing the FIFO method. FIFO method/
4A-00
02. In Octo&er, one o! the proce ing department at Ba con -orporation had &eginning wor( in proce in$entory o! 912,222 and ending wor( in proce in$entory o! 91+,222. ,#ring the month, 9122,222 o! co t were added to prod#ction and the co t o! #nit tran !erred o#t !rom the department wa 9:4,222.'he company # e the FIFO method in it proce co ting y tem. =e"#ired/ -on tr#ct a co t reconci%iation report !or the department !or the month o! Octo&er.
4A-04
03. In Octo&er, one o! the proce ing department at 8#%ian -orporation had ending wor( in proce in$entory o! 914,222. ,#ring the month, 9242,222 o! co t were added to prod#ction and the co t o! #nit tran !erred o#t !rom the department wa 9244,222.'he company # e the FIFO method in it proce co ting y tem. =e"#ired/ -on tr#ct a co t reconci%iation report !or the department !or the month o! Octo&er.
4A-0:
04. In A#g# t, one o! the proce ing department at Marche e -orporation had &eginning wor( in proce in$entory o! 934,222 and ending wor( in proce in$entory o! 93*,222. ,#ring the month, 9421,222 o! co t were added to prod#ction. 'he company # e the FIFO method in it proce co ting y tem. =e"#ired/ -on tr#ct a co t reconci%iation report !or the department !or the month o! A#g# t.
4A-42

Variable Costing

Încărcat de

Informații document

Descriere originală:

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

Variable Costing

Încărcat de

Drepturi de autor:

Formate disponibile

Appendix 4A, FIFO Method

LO%: &'&O equivalent units (App !A)

LO11: 1tep2/own #et.o/ (App !0)

LO!: WAC assi"n#ent of costs

LO1-: Direct #et.o/ (App !0)

LO$: WAC Cost reconciliation

3rofessional E4a# A/apte/

LO2: WAC equivalent units

LO3: WAC cost per E

LO*: &'&O cost per E

LO1: Cost flows

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key

Appendix 4A, FIFO Method Key