TRUE/FALSE: Read the following statements and write your answer before each number.

1) When materials are purchased in a process costing system, a work in process account
is debited with the cost of the materials.
2) Any difference in the equivalent units calculated under the weighted-average and the
FIFO methods is due to the units in the ending work in process inventory.
3) The equivalent units in beginning work in process inventory plus the equivalent units
for the work done during the period equals the units transferred out plus the equivalent
units in ending work in process inventory.
4) There is no difference in the unit costs computed under the weighted-average and
FIFO methods of process costing if there are no beginning work in process
inventories.
5) Under the weighted-average method of process costing, costs from the prior period are
averaged with those of the current period in computing unit costs.
6) In a process costing production report, the “Cost to be accounted for” will be the same
whether the weighted-average or the FIFO method is used.
7) Under the FIFO method of product costing, equivalent units of production consider
units in the beginning inventory as if they were started and completed during the
current period.
8) The production report of a company using the FIFO cost method likely would show
goods transferred from a department in two parts--one part consisting of units from the
beginning inventory completed and transferred, and the other part consisting of units
that were both started and completed during the month.
9) In computing the cost per equivalent unit on the production report, costs in the
beginning work in process inventory are kept separate from current period costs when
the FIFO method is used.
10) A major advantage of the FIFO method is that it allows managers to judge the
performance of the current period independently of the performance of the prior
period.

PROBLEMS:Read the following problems and enclose your final answer in a box.

1) Naleer Corporation uses the weighted-average method in its process costing system.
Operating data for the Lubricating Department for the month of October appear
below:
Units
Percentage
complete
Beginning work in process inventory ............................. 3,400 30%
Transferred in from the prior department during
October ....................................................................... 49,500
Completed and transferred to the next department
during October ............................................................ 48,800
Ending work in process inventory .................................. 4,100 90%

What were the equivalent units for conversion costs in the Lubricating Department for
October?

2) Sadanand Corporation uses the weighted-average method in its process costing

system. The Fitting Department is the second department in its production process.
The data below summarize the department's operations in March.
Units
Percentage
complete
Beginning work in process inventory ..................... 1,100 40%
Transferred in from the prior department during
March .................................................................. 46,000
Ending work in process inventory ........................... 4,600 30%

The Fitting Department's production report indicates that the cost per equivalent unit
for conversion cost for March was $9.24.

How much conversion cost was assigned to the units transferred out of the Fitting
Department during March?

3) Sadron Corporation uses the weighted-average method in its process costing system.
The Fitting Department is the second department in its production process. The data
below summarize the department's operations in March.
Units
Percentage
complete
Beginning work in process inventory ..................... 6,200 20%
Transferred in from the prior department during
March .................................................................. 45,000
Ending work in process inventory .......................... 3,200 60%
The Fitting Department's production report indicates that the cost per equivalent unit
for conversion cost for March was $7.42.

How much conversion cost was assigned to the units transferred out of the Fitting
Department during March?

4) The Assembly Department started the month with 59,000 units in its beginning work
in process inventory. An additional 367,000 units were transferred in from the prior
department during the month to begin processing in the Assembly Department. There
were 35,000 units in the ending work in process inventory of the Assembly
Department.
How many units were transferred to the next processing department during the month?

5) The Assembly Department started the month with 78,000 units in its beginning work
in process inventory. An additional 254,000 units were transferred in from the prior
department during the month to begin processing in the Assembly Department. There
were 21,000 units in the ending work in process inventory of the Assembly
Department.
How many units were transferred to the next processing department during the month?

6) Brooks Company uses the weighted-average method in its process costing system. The
beginning work in process inventory in a particular department consisted of 12,000
units, 100% complete with respect to materials cost and 40% complete with respect to
conversion costs. The total cost in the beginning work in process inventory was
$25,000. During the month, 50,000 units were completed and transferred out of the
department. The costs per equivalent unit were computed to be $1.50 for materials and
$3.20 for conversion costs. The total cost of the units completed and transferred out of
the department was:

7) Rameau Corporation uses the weighted-average method in its process costing system.
The Molding Department is the second department in its production process. The data
below summarize the department's operations in January.
Units
Percentage
complete
Beginning work in process inventory .............................. 5,600 60%
Transferred in from the prior department during
January ......................................................................... 47,000
Completed and transferred to the next department
during January ............................................................. 50,300
Ending work in process inventory ................................... 2,300 40%
The Molding Department's production report indicates that the cost per equivalent unit
for conversion cost for January was $5.29.

How much conversion cost was assigned to the ending work in process inventory in
the Molding Department for January?