In process, end....... Stage of completion....... Finished and transferred........ Dept. B 10,000 units......... 40%................. ?.......... In Dept. B, materials are added at the start of the process. In Dept. C, factory costs are applied evenly throughout the process. Dept. C ? 25% 70,000 units Exercise 12-4 Multiple Choice. Compute for the correct answer. 1. Equivalent production under FIFO is computed as follows: In process, Jan. 1, finished & transferred............8,000 units x = Received, finished & transferred........... In process, Jan. 31.... Finished & transferred..... In process, Feb. 28... What should be the equivalent production under the average method? a. 33,000 b. 34,000 a. 23,000 b. 21,000 6,000 25,000 units x 100%= 25,000 ..5,000 units x 1/5= 1,000 32,000 c. 32,000 d. None of these; answer is 2. The equivalent production under the average method is arrived at as follows. ..20,000 units x 100%= 20,000 ..3,000 units x 2/3= 2,000 22,000 With beginning work in process consisting of 5,000 units, 1/5 done, what should be the equivalent production under FIFO? c. 22,000 d. None of these; answer is 3. Under FIFO costing, equivalent production for beginning work in process, finished and transferred is 6,000 units x 4/5, or 4,800. Which of the following statements is true? a. Equivalent production under average costing must be higher by 1,200. b. Equivalent production under FIFO costing must be higher by 1,200. c. Equivalent production under average costing must be higher by 4,500. d. The difference cannot be determined because of inadequate information. Compute for the equivalent production in each of the following using: (1) FIFO, and (2) weighted average. 1. Even application of cost In process, Jan. 1.......... Started in process...... In process, Jan. 31.... 2. Even application of cost Exercise 12-3 Received from preceding department... In process, end..... Transferred out.. In process, beginning... 3. Materials are added at the start of the process In process, beginning... In process, end...... Received from preceding department..... 5. Abnormal loss of 4,000 units discovered at the end of the process In process, beginning....... Received from preceding department.. In process, end...... 6. Normal loss of 10,000 units discovered when 50% completed Transferred out... 7. In process, beginning.. In process, end... 4. An increase of 20% occurs at the start of the process upon addition of materials In process, beginning.......... Received from preceding department.. In process, end.... .6,000 units, 2/3 completed ..50,000 units 10,000 units, 4/5 completed ..160,000 units In process, beginning...... Stage of completion..... Received from preceding department... Abnormal loss discovered at the end.. Normal loss discovered when 40% completed..... ......... 20,000 units, 4/5 completed 150,000 units ? units, 3/5 completed 12,000 units, 2/3 converted 4,000 units, 1/8 converted .100,000 units ..14,000 units, 2/7 completed .40,000 units .18,000 units, 34 completed .24,000 units, 1/5 completed ..100,000 units 18,000 units, 4 completed Dept. B Dept. C ...6,000 units.............12,000 units 20%.... ?........ 2,000 units 90,000 units 20,000 units, 40% completed 18,000 units, 70% completed ..30% 80,000 units 6,000 units