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

A) True
B) False

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Discuss why units are lost during production.

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In most production processes,losses are ...

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Douglas Company had beginning Work in Process Inventory of 6,000 units that were 45 percent complete as to conversion costs.Douglas Company started and completed 46,000 units this period and had ending Work in Process Inventory of 11,000 units.How many units were started this period?


A) 46,000
B) 52,000
C) 57,000
D) 63,000

E) None of the above
F) All of the above

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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.

E) None of the above
F) A) and B)

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Winthrop Company The following information is available for Winthrop Company for March of the current year.All materials are added at the start of production. Winthrop Company The following information is available for Winthrop Company for March of the current year.All materials are added at the start of production. Refer to Winthrop Company.Prepare a cost of production report for March using FIFO. Refer to Winthrop Company.Prepare a cost of production report for March using FIFO.

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BI 8,000 + Started 35,000 = Ac...

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Winthrop Company The following information is available for Winthrop Company for March of the current year.All materials are added at the start of production. Winthrop Company The following information is available for Winthrop Company for March of the current year.All materials are added at the start of production. Refer to Winthrop Company.Prepare the cost of production report assuming the weighted average method. Refer to Winthrop Company.Prepare the cost of production report assuming the weighted average method.

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BI 8,000 + Started 35,000 = Ac...

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Knight Corporation Knight Corporation has the following information for the current month: Knight Corporation Knight Corporation has the following information for the current month: All materials are added at the start of the production process.Knight Corporation inspects goods at 75 percent completion as to conversion. Refer to Knight Corporation.Assume that the costs per EUP for material and conversion are $2.00 and $2.25,respectively.Using FIFO,what is the total cost assigned to the transferred-out units (rounded to the nearest dollar) ? A) $344,938 B) $365,875 C) $376,938 D) $378,625 All materials are added at the start of the production process.Knight Corporation inspects goods at 75 percent completion as to conversion. Refer to Knight Corporation.Assume that the costs per EUP for material and conversion are $2.00 and $2.25,respectively.Using FIFO,what is the total cost assigned to the transferred-out units (rounded to the nearest dollar) ?


A) $344,938
B) $365,875
C) $376,938
D) $378,625

E) A) and B)
F) A) and C)

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In a process costing system,the journal entry to record the transfer of goods from Department #2 to Finished Goods Inventory is a


A) debit Work in Process Inventory #2,credit Finished Goods Inventory.
B) debit Finished Goods Inventory,credit Work in Process Inventory #1.
C) debit Finished Goods Inventory,credit Work in Process Inventory #2.
D) debit Cost of Goods Sold,credit Work in Process Inventory #2.

E) B) and C)
F) C) and D)

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Guthrie Corporation The following information is available for Guthrie Corporation for the current year: Guthrie Corporation The following information is available for Guthrie Corporation for the current year: All materials are added at the start of production. Refer to Guthrie Corporation.What is the cost per equivalent unit for material using weighted average? A) $1.72 B) $1.62 C) $1.77 D) $2.07 All materials are added at the start of production. Refer to Guthrie Corporation.What is the cost per equivalent unit for material using weighted average?


A) $1.72
B) $1.62
C) $1.77
D) $2.07

E) A) and B)
F) None of the above

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

A) True
B) False

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Knight Corporation Knight Corporation has the following information for the current month: Knight Corporation Knight Corporation has the following information for the current month: All materials are added at the start of the production process.Knight Corporation inspects goods at 75 percent completion as to conversion. Refer to Knight Corporation.What are equivalent units of production for conversion costs,assuming FIFO? A) 97,750 B) 100,000 C) 101,750 D) 104,500 All materials are added at the start of the production process.Knight Corporation inspects goods at 75 percent completion as to conversion. Refer to Knight Corporation.What are equivalent units of production for conversion costs,assuming FIFO?


A) 97,750
B) 100,000
C) 101,750
D) 104,500

E) All of the above
F) B) and D)

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Chapman Corporation The following information is available for Chapman Corporation for the current month: Chapman Corporation The following information is available for Chapman Corporation for the current month: All materials are added at the start of production and the inspection point is at the end of the process. Refer to Chapman Corporation.What are equivalent units of production for conversion costs using weighted average? A) 83,600 B) 82,700 C) 82,500 D) 81,600 All materials are added at the start of production and the inspection point is at the end of the process. Refer to Chapman Corporation.What are equivalent units of production for conversion costs using weighted average?


A) 83,600
B) 82,700
C) 82,500
D) 81,600

E) B) and C)
F) None of the above

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Knight Corporation Knight Corporation has the following information for the current month: Knight Corporation Knight Corporation has the following information for the current month: All materials are added at the start of the production process.Knight Corporation inspects goods at 75 percent completion as to conversion. Refer to Knight Corporation.Assume that the costs per EUP for material and conversion are $2.00 and $2.25,respectively.What is the cost assigned to normal spoilage,using weighted average,and where is it assigned? A) $11,063 Units transferred out and Ending Inventory B) $11,063 Units transferred out C) $12,750 Units transferred out and Ending Inventory D) $12,750 Units transferred out All materials are added at the start of the production process.Knight Corporation inspects goods at 75 percent completion as to conversion. Refer to Knight Corporation.Assume that the costs per EUP for material and conversion are $2.00 and $2.25,respectively.What is the cost assigned to normal spoilage,using weighted average,and where is it assigned? Knight Corporation Knight Corporation has the following information for the current month: All materials are added at the start of the production process.Knight Corporation inspects goods at 75 percent completion as to conversion. Refer to Knight Corporation.Assume that the costs per EUP for material and conversion are $2.00 and $2.25,respectively.What is the cost assigned to normal spoilage,using weighted average,and where is it assigned? A) $11,063 Units transferred out and Ending Inventory B) $11,063 Units transferred out C) $12,750 Units transferred out and Ending Inventory D) $12,750 Units transferred out


A) $11,063 Units transferred out and Ending Inventory
B) $11,063 Units transferred out
C) $12,750 Units transferred out and Ending Inventory
D) $12,750 Units transferred out

E) None of the above
F) A) and B)

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