CHAPTER 10
CHAPTER 10 - AVERAGE AND FIFO COSTING
TRUE OR FALSE
1.
TRUE
2.
TRUE
3.
TRUE
4.
FALSE
5.
TRUE
6.
TRUE
7.
FALSE
8.
TRUE
9.
TRUE
10.
TRUE
MULTIPLE CHOICE - THEORY
1.
B
11.
C
2.
A
12.
C
3.
A
13.
C
4.
B
14.
C
5.
A
15.
D
6.
C
7.
A
8.
A
9.
D
10.
A
Problem 1
1) FIFO
Units in process, beg.
Units started
6,000
42,000
48,000
Units completed & transferred (40,000)
IP beg.
6,000
Started & completed
34,000
Units in process, end
8,000
48,000
2) AVERAGE
Units in process, beg.
6,000
Units started
42,000
48,000
Units completed
Units IP end
40,000
8,000
48,000
80% 4,800
70% 4,200
100% 34,000 100% 34,000
10%
800 15% 1,200
39,600
39,400
100% 40,000
10%
800
40,800
100%
15%
40,000
1,200
41,200
Problem 2
1) FIFO
Units in process, beg.
Units started
5,000
35,000
40,000
Units completed & transferred (30,000)
IP beg.
6,000
Started & completed
24,000
Units in process, end
10,000
40,000
85% 5,100
75% 4,500
100% 24,000 100% 24,000
20% 2,000 30%
3,000
31,100
31,500
PAGE 2
2) AVERAGE
Units in process, beg.
Units started
5,000
35,000
40,000
Units completed
Units IP end
30,000
10,000
48,000
Problem 3
1)
Units in process beg.
Units started
100% 30,000
20%
2,000
32,000
100%
30%
300
2,000
2.300
Units comp. & transf. (1,700)
IP beg.
Started & completed
Units in process, end
300
1,400
600
2,300
40%
100%
40%
120
1,400
240
1,760
70%
100%
20%
2)
Unit cost -
540
Materials 3,714/1760
Conversion 2,258/1730
6,512
=
=
2.110227
1.305202
3.415429
3) Cost of units transferred out
From IP beg.
Cost last month
Cost added Mat. ( 120 x 2.110227)
Conversion ( 210 x 1.305202)
From units started & completed (1,400 x 3.415429)
540
253
274
4) Cost of ending inventory
Materials (240 x 2.110227)
Conversion ( 120 x 1.305202)
Problem 4 1) FIFO
Units in process, beg
Units started
Units Completed ( 17,000)
IP beg.
Started & completed
Units in process, end
30,000
3,000
33,000
1,067
4,782
5,849
507
156
663
8,000
14,000
22,000
8,000
9,000
5,000
22,000
70% 5,600
100% 9,000
80% 4,000
18,600
70%
TRUE OR FALSE
1.
TRUE
2.
TRUE
3.
TRUE
4.
FALSE
5.
TRUE
6.
TRUE
7.
FALSE
8.
TRUE
9.
TRUE
10.
TRUE
MULTIPLE CHOICE - THEORY
1.
B
11.
C
2.
A
12.
C
3.
A
13.
C
4.
B
14.
C
5.
A
15.
D
6.
C
7.
A
8.
A
9.
D
10.
A
Problem 1
1) FIFO
Units in process, beg.
Units started
6,000
42,000
48,000
Units completed & transferred (40,000)
IP beg.
6,000
Started & completed
34,000
Units in process, end
8,000
48,000
2) AVERAGE
Units in process, beg.
6,000
Units started
42,000
48,000
Units completed
Units IP end
40,000
8,000
48,000
80% 4,800
70% 4,200
100% 34,000 100% 34,000
10%
800 15% 1,200
39,600
39,400
100% 40,000
10%
800
40,800
100%
15%
40,000
1,200
41,200
Problem 2
1) FIFO
Units in process, beg.
Units started
5,000
35,000
40,000
Units completed & transferred (30,000)
IP beg.
6,000
Started & completed
24,000
Units in process, end
10,000
40,000
85% 5,100
75% 4,500
100% 24,000 100% 24,000
20% 2,000 30%
3,000
31,100
31,500
PAGE 2
2) AVERAGE
Units in process, beg.
Units started
5,000
35,000
40,000
Units completed
Units IP end
30,000
10,000
48,000
Problem 3
1)
Units in process beg.
Units started
100% 30,000
20%
2,000
32,000
100%
30%
300
2,000
2.300
Units comp. & transf. (1,700)
IP beg.
Started & completed
Units in process, end
300
1,400
600
2,300
40%
100%
40%
120
1,400
240
1,760
70%
100%
20%
2)
Unit cost -
540
Materials 3,714/1760
Conversion 2,258/1730
6,512
=
=
2.110227
1.305202
3.415429
3) Cost of units transferred out
From IP beg.
Cost last month
Cost added Mat. ( 120 x 2.110227)
Conversion ( 210 x 1.305202)
From units started & completed (1,400 x 3.415429)
540
253
274
4) Cost of ending inventory
Materials (240 x 2.110227)
Conversion ( 120 x 1.305202)
Problem 4 1) FIFO
Units in process, beg
Units started
Units Completed ( 17,000)
IP beg.
Started & completed
Units in process, end
30,000
3,000
33,000
1,067
4,782
5,849
507
156
663
8,000
14,000
22,000
8,000
9,000
5,000
22,000
70% 5,600
100% 9,000
80% 4,000
18,600
70%