Reference no: EM132764875

Question - PROCESS COSTING

PROBLEM 1 - Sussex 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

1. Materials are added at 55% stage of completion in the Mixing Department. What are the equivalent units of production for the month of April under FIFO method?

2. What are the equivalent units of production for the month of April under average method?

PROBLEM 2 - On September 30, work in process totalled 9,000 units 60% complete (based on conversion costs added uniformly throughout the department and material added at the start of the process). A total of 100, 000 units were transferred to the next department during October. On October 31, a total of 8, 000 units 40% complete (based on conversion costs) were still in process in Department A.

Using the weighted-average cost flow method, what are the equivalent units to be used in the calculation of costs for October?

PROBLEM 3 - Richardson Company computed the flow of physical units completed for Department M for the month of March 2011 as follows:

Units completed:

From work in process on March 1, 2011 15,000

From March production 45,000

60,000

Materials are added at the beginning of the process. The 12, 000 units of work in process at March 31, 2011, were 80% complete to conversion costs. The work in process at March 1, 2011, was 60% complete to conversion costs.

Using the FIFO method, find the equivalent units for March conversion costs?