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1 ) Asif Furnishings manufactures its output in two departments - A and B. The company uses the FIFO method in its process costing system.

On December 1, Department B had 8 500 units, which were 50 per cent complete as to conversion costs. Materials were 100 per cent used in the process.

During December, 11 000 units were completed and transferred from Department A.

On December 31, Department B had 4 000 units remaining, which were 35 per cent complete as to conversion costs.

Required:

What number of units were completed in Department B and transferred to the finished goods inventory during December?

Question 1Answer

A.

13,650

B.

18,550

C.

14,500

D.

15,500

2) Ali Jabr Chemicals produces a compound through two processes. For its second process for a particular period, Collins had an opening WIP inventory of 100 units halfway through the process.

2 300 units were completed in the period, and a closing WIP inventory of 400 units was three-quarters of the way through the process. Materials are added at the beginning of the process, and conversion costs are incurred uniformly.

Required: Calculate the equivalent units for transferred-in costs and conversion costs for Process 2 for the period if the firm used FIFO costing. Choose the correct answer from the following options.

a. $2,600 and $2650

b. $2750 and $2770

c. $3200 and $3400

d. $2,500 and $2700

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