Process Costing - FIFO

The major benefit of the FIFO method is simplicity.

• True

• False

• Not so sure

• Have no idea

There are two approaches for dealing with the prior-period output and prior-period costs found in beginning work in process: the weighted average method and the FIFO method.

• False

• True

• Is it?

• Not so sure

Under the _________________ method there are two categories of completed units; units started and completed during the period and units from beginning inventory

• FIFO

• Average

• Both

• None

Department Z's cost per equivalent unit of production for materials using the FIFO method would be

• $0.90.

• $1.20.

• $0.96.

• $1.04.

Department Z's cost per equivalent unit of production for conversion costs using the FIFO method would be

• $0.85.

• $1.18.

• $0.73.

• $1.02.

Department Z's cost of goods transferred out using the FIFO method would be

• $3,960

• $3,160.

• $3,552

• $3,500.

Under the FIFO production costing method, the two categories of completed units used to compute the total cost of units completed during a period are... 

• beginning work-in-process units and units started.

• units started and completed and ending work-in-process units.

• beginning work-in-process units and units started and completed during the current period.

• other categories.

The total associated manufacturing costs for beginning work in process units under the FIFO method are:

• the cost of ending work-in-process units.

• the sum of the prior-period costs plus the costs incurred in the current period to finish the units in beginning work in process

• conversion costs.

• the cost of units started and completed.

If all materials are added at the beginning of the process. Using the first-in, first-out method, the equivalent units for materials would be

• 85,000.

• 105,000.

• 90,000.

• 110,000.

This _______ method considers the percentage of completion of beginning work-in-process.