FIFO and Weighted Average Costing Method

TRUE OR FALSE
1. The weighted average method combines beginning inventory and current production to compute cost
per unit of production.

2. The FIFO method combines beginning inventory and current production to compute cost per unit of
production.

3. The weighted average method separates beginning inventory and current production to compute cost
per unit of production.

4. The FIFO method separates beginning inventory and current production to compute cost per unit of
production.

5. The numerator in the formula for equivalent units includes all beginning inventory costs when using the
weighted average costing assumption

6. The numerator in the formula for equivalent units includes all beginning inventory costs when using the
FIFO costing assumption

7. The weighted average costing method assumes that units in beginning inventory are the first units
transferred.

8. The FIFO costing method assumes that units in beginning inventory are the first units transferred

9. Standard costing is compatible with both FIFO and weighted average methods of costing

10. Using FIFO costing, equivalent units of production (EUP) can be determined by subtracting EUP’s in
Beginning work in process from weighted average EUP.

11. Weighted average equivalent units of production (EUP) can be determined by adding EUP’s in ending
work in process to units transferred out.
MC - THEORY
1. When added materials in subsequent departments result in an increase of the units produced, the unit
transferred-in costs will:

A. be reclassified as new materials

B. be increased to provide for the additional units
C. be accounted for under the fifo costing method
D. be decreased as they are spread over more units
E. remain unchanged

2. In accounting for beginning inventory costs, the method that allows the addition of beginning
inventory costs with costs incurred during the period is referred to as:

A. first-in, first-out
B. addition
C. last-in, first-out
D. average
E. first-in, last-out

3. In determining the cost of goods transferred in from a previous department under the average cost
method:

A. a simple average of unit costs is used

B. beginning inventory costs are separated from costs transferred in during the period
C. a first-in, first-out approach is used
D. equivalent production in ending inventory is separated from other transferred-in costs
E. a weighted average of unit costs is used

4.. The average and fifo process costing methods differ in that the average method:

A. can be used under any cost flow assumption

B. is much more difficult to apply than the fifo method
C. requires that ending work in process inventory be stated in terms of equivalent units of production
D. considers the ending work in process inventory only partially complete
E. does not consider the degree of completion of beginning work in process inventory when computing
equivalent units of production

5. The first step in applying the average cost method is to:

A. add the beginning work in process costs to the current period's production costs
B. divide the current period's production costs by the equivalent units
C. subtract the beginning work in process costs from the current period's production costs
D. A and B
E. B and C
6. Beginning work in process was 60% complete as to conversion costs, and ending work in process
was 45% complete as to conversion costs. The dollar amount of the conversion cost included in ending
work in process (using the average cost method) is determined by multiplying the average unit conversion
costs by what percentage of the total units in ending work in process?

A. 60%
B. 55%
C. 45%
D. 52%
E. 100%

10. If a company reports two different unit costs for goods transferred to the next department, it is
reasonable to assume that:

A. the department accounts for lost units at the end of the process
B. a fifo costing method is used
C. lost unit costs are computed separately
D. an average costing method is used
E. errors must have occurred in recording costs

11. In order to compute equivalent units of production using the fifo method of process costing, work
for the period must be broken down to units:

A. started and completed during the period

B. completed during the period and units in ending inventory
C. completed from beginning inventory, started and completed during the month, and units in ending
inventory
D. started during the period and units transferred out during the period
E. processed during the period and units completed during the period

12. The first-in, first-out method of process costing will produce the same cost of goods manufactured
amount as the average cost method when:

A. there is no beginning inventory

B. there is no ending inventory
C. beginning and ending inventories are each 50% complete
D. beginning inventories are 100% complete as to materials
E. goods produced are homogeneous

13. The fifo method of process costing differs from the average cost method of process costing in that
fifo:

A. allocates costs based on whole units, but the average cost method uses equivalent units
B. considers the stage of completion of beginning work in process in computing equivalent units of
production, but the average cost method does not
C. does not consider the stage of completion of beginning work in process in computing equivalent units
of production, but the average cost method does
D. is applicable only to those companies using the fifo inventory pricing method, but the average cost
method may be used with any inventory pricing method
E. none of the above

18. If a company reports two different unit costs for goods transferred to the next department, it is
reasonable to assume that:

A. the department accounts for lost units at the end of the process
B. a fifo costing method is used
C. lost unit costs are computed separately
D. an average costing method is used
E. errors must have occurred in recording costs

The following questions are based on the material in the Appendix to the chapter.
19. If a company reports two different unit costs for goods transferred to the next department, it is
reasonable to assume that:

A. the department accounts for lost units at the end of the process
B. a fifo costing method is used
C. lost unit costs are computed separately
D. an average costing method is used
E. errors must have occurred in recording costs

20. In order to compute equivalent units of production using the fifo method of process costing, work
for the period must be broken down to units:

A. started and completed during the period

B. completed during the period and units in ending inventory
C. completed from beginning inventory, started and completed during the month, and units in ending
inventory
D. started during the period and units transferred out during the period
E. processed during the period and units completed during the period

21. In a process costing system using the weighted average method, cost per equivalent unit for a given
cost component is found by dividing which of the following by EUP?

a. only current period cost

b. current period cost plus the cost of beginning inventory
c. current period cost less the cost of beginning inventory
d. current period cost plus the cost of ending inventory

22. The weighted average method is thought by some accountants to be inferior to the FIFO method
because it
a. is more difficult to apply.
b. only considers the last units worked on.
c. ignores work performed in subsequent periods.
d. commingles costs of two periods.

23. The first step in determining the cost per EUP per cost component under the weighted average
method is to

a. add the beginning Work in Process Inventory cost to the current period's production cost.
b. divide the current period's production cost by the equivalent units.
c. subtract the beginning Work in Process Inventory cost from the current period's production cost.
d. divide the current period's production cost into the EUP

24. The difference between EUP calculated using FIFO and EUP calculated using weighted average is
the equivalent units

a. started and completed during the period.

b. residing in beginning Work in Process Inventory.
c. residing in ending Work in Process Inventory.
d. uncompleted in Work in Process Inventory.

25. EUP calculations for standard process costing are the same as

a. the EUP calculations for weighted average process costing.

b. the EUP calculations for FIFO process costing.
c. LIFO inventory costing for merchandise.
d. the EUP calculations for LIFO process costing.

26. In a FIFO process costing system, which of the following are assumed to be completed first in the
current period?

a. units started this period

b. units started last period
c. units transferred out
d. units still in process

27. To compute equivalent units of production using the FIFO method of process costing, work for the
current period must be stated in units

a. completed during the period and units in ending inventory.

b. completed from beginning inventory, units started and completed during the period, and units partially
completed in ending inventory.
c. started during the period and units transferred out during the period.
d. processed during the period and units completed during the period.
28. The FIFO method of process costing will produce the same cost of goods transferred out amount as
the weighted average method when

a. the goods produced are homogeneous.

b. there is no beginning Work in Process Inventory.
c. there is no ending Work in Process Inventory.
d. beginning and ending Work in Process Inventories are each 50 percent complete

29. The primary difference between the FIFO and weighted average methods of process costing is

a. in the treatment of beginning Work in Process Inventory.

b. in the treatment of current period production costs.
c. in the treatment of spoiled units.
d. none of the above.

30.

31. Averaging the total cost of completed beginning inventory and units started and completed over all
units transferred out is known as

a. strict FIFO.
b. modified FIFO.
c. weighted average costing.
d. normal costing.

32. When standard costs are used in process costing,

a. variances can be measured during the production period.

b. total costs rather than current production and current costs are used.
c. process costing calculations are made simpler.
d. the weighted average method of calculating EUPs makes computing transferred-out costs easier.

33. Which of the following is subtracted from weighted average EUP to derive FIFO EUP?

a. beginning WIP EUP completed in current period

b. beginning WIP EUP produced in prior period
c. ending WIP EUP not completed
d. ending WIP EUP completed

34. Material is added at the beginning of a process in a process costing system. The beginning Work in
Process Inventory for the process was 30 percent complete as to conversion costs. Using the FIFO
method of costing, the number of equivalent units of material for the process during this period is equal
to the

a. beginning inventory this period for the process.

b. units started this period in the process.
c. units started this period in the process plus the beginning Work in Process Inventory.
d. units started and completed this period plus the units in ending Work in Process Inventory.

35.
MC - COMPUTATIONAL
1. Chicago Processing Co. uses the average costing method and reported a beginning inventory of
5,000 units that were 20% complete with respect to materials in one department. During the month,
11,000 units were started; 8,000 units were finished; ending inventory amounted to 8,000 units that were
60% complete with respect to materials. Total materials cost during the period for work in process should
be spread over:

A. 7,200 units
B. 16,000 units
C. 11,200 units
D. 13,200 units
E. 12,800 units

2. Dover Corporation's production cycle starts in the Mixing Department. The following information is
available for April:
Units
Work in process, April 1 (50% complete)........................................... 40,000
Started in April................................................................................... 240,000
Work in process, April 30 (60% complete)......................................... 25,000

Materials are added at the beginning of the process in the Mixing Department. Using the average cost
method, what are the equivalent units of production for the month of April?

Materials Conversion
A. 255,000 255,000
B. 270,000 280,000
C. 280,000 270,000
D. 305,000 275,000
E. 240,000 250,000

3. Information concerning Department A of Neeley Company for June is as follows:

Materials
Units Costs
Beginning work in process.............................................. 17,000 $12,800
Started in June................................................................ 82,000 69,700
Units completed.............................................................. 85,000
Ending work in process................................................... 14,000
All materials are added at the beginning of the process. Using the average cost method, the cost per
equivalent unit for materials is:

A. $0.825
B. $0.833
C. $0.85
D. $0.97
E. $1.01
4. Connor Company computed the flow of physical units completed for Department M for the month of
March as follows:

Units completed:
From work in process on March 1................................................... 15,000
From March production................................................................... 45,000
Total.......................................................................................... 60,000

Materials are added at the beginning of the process. The 12,000 units of work in process at March 31
were 80% complete as to conversion costs. The work in process at March 1 was 60% complete as to
conversion costs. Using the fifo method, the equivalent units for March conversion costs were:

A. 60,600
B. 55,200
C. 57,000
D. 54,600
E. 63,600

5. Simpson Co. adds materials at the beginning of the process in Department M. The following
information pertains to Department M's work in process during April:
Units
Work in process on April 1
(60% complete as to conversion cost)......................................... 3,000
Started in April................................................................................... 25,000
Completed in April............................................................................. 20,000
Work in process on April 30
 (75% complete as to conversion cost)......................................... 8,000

Under the average costing method, the equivalent units for conversion cost are:

A. 26,000
B. 25,000
C. 24,000
D. 21,800
E. none of the above

6. During March, Quig Company's Department Y equivalent unit product costs, computed under the
average cost method, were as follows:

Materials.................................... $1
Conversion................................. 3
Transferred-in............................. 5
Materials are introduced at the end of the process in Department Y. There were 4,000 units (40% complete
as to conversion costs) in work in process at March 31. The total costs assigned to the March 31 work in
process inventory should be:

A. $36,000
B. $28,800
C. $27,200
D. $24,800
E. none of the above

7. The Hilo Company computed the physical flow of units for Department A for the month of April as
follows:

Units completed:
From work in process on April 1..................................................... 10,000
From April production..................................................................... 30,000
Total.......................................................................................... 40,000

Materials are added at the beginning of the process. Units of work in process at April 30 were 8,000. The
work in process at April 1 was 80% complete as to conversion costs, and the work in process at April 30
was 60% complete as to conversion costs. What are the equivalent units of production for the month of
April using the fifo method?

Materials Conversion Costs

A. 48,000 48,000
B. 40,000 47,600
C. 36,800 38,000
D. 38,000 36,800
E. 48,000 44,800
8. Department A is the first stage of Mann Company's production cycle. The following information is
available for conversion costs for the month of April:
................................................................................................... Units
Beginning work in process (60% complete)........................................ 20,000
Started in April.................................................................................... 340,000
Completed in April and transferred to Department B......................... 320,000
Ending work in process (40% complete)............................................. 40,000

Using the fifo method, the equivalent units for the conversion cost calculation are:

A. 336,000
B. 360,000
C. 328,000
D. 320,000
E. 324,000

9. Kennedy Company adds materials in the beginning of the process in the Forming Department, which
is the first of two stages of its production cycle. Information concerning the materials used in the
Forming Department in October is as follows:

Materials
Units Costs
Work in process, October 1............................................. 6,000 $ 3,000
Units started................................................................... 50,000 25,560
Units completed and transferred out.............................. 44,000

Using the average cost method, what was the materials cost of work in process at October 31?
A. $3,000
B. $6,120
C. $3,060
D. $5,520
E. $6,000

10. Refer to Ryan Company. Compute the number of units started and completed in March.
a. 29,500
b. 34,500
c. 36,500
d. 39,000

11. Refer to Ryan Company. Calculate equivalent units of production for material using FIFO.

a. 32,000
b. 36,800
c. 37,125
d. 39,000

12. Refer to Ryan Company. Calculate equivalent units of production for conversion using FIFO.

a. 30,125
b. 34,325
c. 37,125
d. 39,000

13. Refer to Ryan Company. Calculate equivalent units of production for material using weighted
average.

a. 32,000
b. 34,325
c. 37,125
d. 39,000

14. Refer to Ryan Company. Calculate equivalent units of production for conversion using weighted
average.

a. 34,325
b. 37,125
c. 38,375
d. 39,925
15. Refer to Maxwell Company. What are the equivalent units for material using the weighted average
method?

a. 120,000
b. 123,860
c. 128,360
d. 130,000

16. Refer to Maxwell Company. What are the equivalent units for material using the FIFO method?

a. 111,800
b. 120,000
c. 125,500
d. 130,000

17. Refer to Maxwell Company. What are the equivalent units for conversion using the weighted
average method?

a. 120,000
b. 123,440
c. 128,360
d. 130,000
18. Refer to Maxwell Company. What are the equivalent units for conversion using the FIFO method?

a. 118,360
b. 122,860
c. 123,860
d. 128,360

19. Refer to Maxwell Company. What is the material cost per equivalent unit using the weighted average
method?

a. $.58
b. $.62
c. $.77
d. $.82

20. Refer to Maxwell Company. What is the conversion cost per equivalent unit using the weighted
average method?

a. $1.01
b. $1.05
c. $1.55
d. $1.61

21. Refer to Maxwell Company. What is the cost of units completed using the weighted average?

a. $237,510
b. $266,742
c. $278,400
d. $282,576
22. Refer to Cherub Company. Assuming a weighted average method of process costing, compute EUP
units for Materials A and B.

a. 2,700 and 2,280, respectively

b. 2,700 and 2,450, respectively
c. 2,000 and 2,240, respectively
d. 2,240 and 2,700, respectively

23. Refer to Cherub Company Assuming a FIFO method of process costing, compute EUP units for
Materials A and B.

a. 2,700 and 2,280, respectively

b. 2,700 and 2,450, respectively
c. 2,000 and 2,240, respectively
d. 2,450 and 2,880, respectively

24. Refer to Cherub Company Assuming a weighted average method of process costing, compute EUP
for conversion.

a. 2,600
b. 2,180
c. 2,000
d. 2,700
25. Refer to Cherub Company Assuming a FIFO method of process costing, compute EUP for
conversion.

a. 2,240
b. 2,180
c. 2,280
d. 2,700

26. Refer to Cherub Company Assuming a weighted average method of process costing, compute the
average cost per unit for Material A.

a. $20.10
b. $20.00
c. $31.25
d. $31.00

27. Refer to Cherub Company Assuming a FIFO method of process costing, compute the average cost
per EUP for Material A.

a. $31.25
b. $20.10
c. $20.00
d. $31.00

28. Refer to Cherub Company Assuming a FIFO method of process costing, compute the average cost
per EUP for Material B.

a. $20.10
b. $31.25
c. $20.00
d. $31.00

29. Refer to Cherub Company Assuming a weighted average method of process costing, compute the
average cost per EUP for Material B.

a. $20.00
b. $31.25
c. $20.10
d. $31.00

30. Refer to Cherub Company Assuming a FIFO method of process costing, compute the average cost
per EUP for conversion.

a. $45.50
b. $45.00
c. $43.03
d. $47.59

31. Refer to Cherub Company Assuming a weighted average method of process costing, compute the
average cost per EUP for conversion.

a. $39.90
b. $45.00
c. $43.03
d. $47.59

32. Refer to Talmidge Company. Using weighted average, what are equivalent units for material?

a. 82,000
b. 89,500
c. 84,500
d. 70,000

33. Refer to Talmidge Company. Using weighted average, what are equivalent units for conversion
costs?

a. 80,600
b. 78,100
c. 83,100
d. 75,600

34. Refer to Talmidge Company. What is the cost per equivalent unit for material using weighted
average?

a. $1.72
b. $1.62
c. $1.77
d. $2.07

35. Refer to Talmidge Company. What is the cost per equivalent unit for conversion costs using
weighted average?

a. $4.62
b. $4.21
c. $4.48
d. $4.34

36. Refer to Talmidge Company. What is the cost assigned to normal spoilage using weighted average?

a. $31,000
b. $15,500
c. $30,850
d. None of the responses are correct

37. Refer to Talmidge Company. Assume that the cost per EUP for material and conversion are $1.75
and $4.55, respectively. What is the cost assigned to ending Work in Process?

a. $100,800
b. $87,430
c. $103,180
d. $71,680

38. Refer to Talmidge Company. Using FIFO, what are equivalent units for material?

a. 75,000
b. 72,500
c. 84,500
d. 70,000

39. Refer to Talmidge Company. Using FIFO, what are equivalent units for conversion costs?

a. 72,225
b. 67,225
c. 69,725
d. 78,100

40. Refer to Talmidge Company. Using FIFO, what is the cost per equivalent unit for material?

a. $1.42
b. $1.66
c. $1.71
d. $1.60
41. Refer to Talmidge Company. Using FIFO, what is the cost per equivalent unit for conversion costs?

a. $4.46
b. $4.15
c. $4.30
d. $3.84

42. Refer to Talmidge Company. Assume that the FIFO EUP cost for material and conversion are $1.50
and $4.75, respectively. Using FIFO what is the total cost assigned to the units transferred out?

a. $414,194
b. $339,094
c. $445,444
d. $396,975

43. Refer to Bowman Company. What are equivalent units of production for material, assuming FIFO?

a. 100,000
b. 96,500
c. 95,000
d. 120,000

44. Refer to Bowman Company. What are equivalent units of production for conversion costs, assuming
FIFO?

a. 108,900
b. 103,900
c. 108,650
d. 106,525
45. Refer to Bowman Company. Assume that the costs per EUP for material and conversion are $1.00
and $1.50, respectively. What is the amount of the period cost for July using FIFO?

a. $0
b. $9,375
c. $10,625
d. $12,500

46. Refer to Bowman Company. Assume that the costs per EUP for material and conversion are $1.00
and $1.50, respectively. Using FIFO, what is the total cost assigned to the transferred-out units (rounded
to the nearest dollar)?

a. $245,750
b. $244,438
c. $237,000
d. $224,938

47. Refer to Bowman Company. What are equivalent units of production for material assuming weighted
average is used?

a. 107,000
b. 116,500
c. 120,000
d. 115,000

48. Refer to Bowman Company. What are equivalent units of production for conversion costs assuming
weighted average is used?

a. 113,525
b. 114,400
c. 114,775
d. 115,650

49.
50. Refer to Bowman Company. Assume that the costs per EUP for material and conversion are $1.00
and $1.50, respectively. Assuming that weighted average is used, what is the cost assigned to ending
inventory?

a. $29,725.00
b. $37,162.50
c. $38,475.00
d. $36,250.00

51. Refer to Jones Company. What are equivalent units of production for material using FIFO?

a. 80,000
b. 79,100
c. 78,900
d. 87,500

52. Refer to Jones Company. What are equivalent units of production for conversion costs using FIFO?

a. 79,700
b. 79,500
c. 81,100
d. 80,600
53. Refer to Jones Company. What are equivalent units of production for material using weighted
average?

a. 86,600
b. 87,500
c. 86,400
d. 85,500

54. Refer to Jones Company. What are equivalent units of production for conversion costs using
weighted average?

a. 83,600
b. 82,700
c. 82,500
d. 81,600

55. Refer to Jones Company. What is cost per equivalent unit for material using FIFO?

a. $1.63
b. $1.37
c. $1.50
d. $1.56

56. Refer to Jones Company. What is cost per equivalent unit for conversion costs using FIFO?

a. $4.00
b. $4.19
c. $4.34
d. $4.38

57. Refer to Jones Company. What is cost per equivalent unit for material using weighted average?

a. $1.49
b. $1.63
c. $1.56
d. $1.44

58. Refer to Jones Company. What is cost per equivalent unit for conversion costs using weighted
average?

a. $4.19
b. $4.41
c. $4.55
d. $4.35
59. Refer to Jones Company. What is the cost assigned to ending inventory using FIFO?

a. $75,920
b. $58,994
c. $56,420
d. $53,144

60. Refer to Jones Company. What is the cost assigned to abnormal spoilage using FIFO?

a. $1,350
b. $3,906
c. $5,256
d. $6,424

61. Refer to Jones Company. What is the cost assigned to normal spoilage and how is it classified using
weighted average?

a. $6,193 allocated between WIP and Transferred Out

b. $6,424 allocated between WIP and Transferred Out
c. $6,193 assigned to loss account
d. $6,424 assigned to units Transferred Out

62. Refer to Jones Company. What is the total cost assigned to goods transferred out using weighted
average?

a. $435,080
b. $429,824
c. $428,656
d. $423,400

63. Mehta Company Co. uses a FIFO process costing system. The company had 5,000 units that were
60 percent complete as to conversion costs at the beginning of the month. The company started 22,000
units this period and had 7,000 units in ending Work in Process Inventory that were 35 percent complete
as to conversion costs. What are equivalent units for material, if material is added at the beginning of the
process?

a. 18,000
b. 22,000
c. 25,000
d. 27,000
64. Julia Company makes fabric-covered hatboxes. The company began September with 500 boxes in
process that were 100 percent complete as to cardboard, 80 percent complete as to cloth, and 60
percent complete as to conversion costs. During the month, 3,300 boxes were started. On September
30, 350 boxes were in process (100 percent complete as to cardboard, 70 percent complete as to cloth,
and 55 percent complete as to conversion costs). Using the FIFO method, what are equivalent units for
cloth?

a. 3,295
b. 3,395
c. 3,450
d. 3,595

66. Refer to Reed Company. How many units were transferred out in November?

a. 15,500
b. 18,000
c. 21,500
d. 24,000

67. Refer to Reed Company. Assume that weighted average process costing is used. What is the cost
per equivalent unit for material?

a. $0.55
b. $1.05
c. $1.31
d. $1.83
68. Refer to Reed Company. Assume that FIFO process costing is used. What is the cost per equivalent
unit for conversion?

a. $3.44
b. $4.24
c. $5.71
d. $7.03

Holiday Company
The Holiday Company makes wreaths in two departments: Forming and Decorating. Forming began
the month with 500 wreaths in process that were 100 percent complete as to material and 40 percent
complete as to conversion. During the month, 6,500 wreaths were started. At month end, Forming had
2,100 wreaths that were still in process that were 100 percent complete as to material and 50 percent
complete as to conversion. Assume Forming uses the weighted average method of process costing.
Costs in the Forming Department are as follows:

Beginning Work in Process Costs:

Material $1,000
Conversion 1,500

Current Costs:
Material $3,200
Conversion 5,045

The Decorating Department had 600 wreaths in process at the beginning of the month that were 80
percent complete as to material and 90 percent complete as to conversion. The department had 300
units in ending Work in Process that were 50 percent complete as to material and 75 percent complete
as to conversion. Decorating uses the FIFO method of process costing, and costs associated with
Decorating are:

Beginning WIP Inventory:

Transferred In $1,170
Material 4,320
Conversion 6,210

Current Period:
Transferred In ?
Material $67,745
Conversion 95,820

69 Refer to Holiday Company. How many units were transferred to Decorating during the month?

a. 600
b. 4,900
c. 5,950
d. 7,000

70. Refer to Holiday Company. What was the cost transferred out of Forming during the month?

a. $5,341
b. $6,419
c. $8,245
d. $8,330

71. Refer to Holiday Company. Assume 8,000 units were transferred to Decorating. Compute the number
of equivalent units as to costs in Decorating for the transferred-in cost component.

a. 7,400
b. 7,700
c. 8,000
d. 8,600

72. Refer to Holiday Company. Assume 8,000 units were transferred to Decorating. Compute the number
of equivalent units in Decorating for material.

a. 7,970
b. 8,000
c. 8,330
d. 8,450

73. Refer to Holiday Company. Assume 8,000 units were transferred to Decorating. Compute the number
of equivalent units in Decorating for conversion.

a. 7,925
b. 7,985
c. 8,360
d. 8,465

74. Refer to Holiday Company. Assume that 8,000 units were transferred to Decorating at a total cost of
$16,000. What is the material cost per equivalent unit in Decorating?

a. $8.50
b. $8.65
c. $8.80
d. $9.04

75. Refer to Holiday Company. Assume that 8,000 units were transferred to Decorating at a total cost of
$16,000. What is the conversion cost per equivalent unit in Decorating?

a. $11.32
b. $11.46
c. $12.00
d. $12.78

76. Refer to Holiday Company. Assume the material cost per EUP is $8.00 and the conversion cost per
EUP is $15 in Decorating. What is the cost of completing the units in beginning inventory?

a. $ 960
b. $ 1,380
c. $ 1,860
d. $11,940