FIFO COSTING PROBLEMS EVEN AND UNEVEN

PROBLEM 1
Compute the equivalent production in each of the following cases under FIFO method:

In process, beginning 20,000 (2/5)

Started in process 150,000
Transferred out 146,000
In process, end, 1/3 is ¼ completed, ½ is 3/8 completed and the
balance is 83 1/3% completed ?
Materials are applied 1/5 at the start, ½ when the process is
3/5 completed and the balance when the process is 1/5 incomplete

PROBLEM 2
The Takbo Lakad Corporation operates two departments, A and B, in producing its
single product. In both departments, the company uses the FIFO method, uniform application of
cost. Production data for September, 2010 are as follows:

Department A Department B
Units
In process, August 31 25,000 36,000
Stage of completion 1/5 66 2/3%
Finished and in the department 6,000 8,000
Transferred to stockroom 254,000
In process, September 30 15,000 18,000
Stage incomplete 16 2/3%

Costs
Cost added this month
Materials 1,112,400 855,030
Labor 826,575 570,020
Overhead 316,725 388,650
In Process, August 31 53,560 180,000

Of the units incomplete at the end of the month, 1/3 is 16 2/3% incomplete, 1/6 is 5/6
incomplete and the balance is 2/5 complete.

REQUIRED
1. Cost of production report
2. Journal entries

PROBLEM 3
Ukraine Co consists of 3 successive departments. During September, 2012, Department X
transferred 15,000 units to Department Y with a total cost of 165,000.
Data for Departments Y and Z are as follows:
Department Y Department Z
Units
In process, Sept 1 1,000 (3/4) 2,000 3/5)
Transferred out 13,500 14,000
In process, Sept 30 ? ?
Stage incomplete 3/5 2/3
Costs
Unit cost of units transferred out 21.60 30.00
Current costs
Materials 68,750 53,200
Labor 41,250 26,600
Overhead 27,500 26,600
REQUIRED
Prepare a cost of production report and journal entrties

PROBLEM 4
World Chess Olympiad Co. furnishes you with the following data:

Department L Department M
Units
In process, March 1 6,000 4,000
Stage of completion 1/3 ¼
Received from prior dept 40,000 26,000
In process, March 31 4/5 ½
Costs
Costs in March
Materials 29,680 50,400
Labor 84,000 64,800
Overhead 48,000 36,000
Cost of transfer from Dept K 200,000
Cost from last month 13,520 33,800

Department L applies materials 60% at the start of the process, 20% when the process is
2/3 completed and 20% when the process is ¾ completed.
Department M introduces 40% of the material requirement when the process is 1/3
completed, 40% when the process is at mid-point and the balance at the point of completion.

REQUIRED
Cost of production report for March, 2012.

PROBLEM 5
The Food Rationing Co. processes a certain product in two consecutive departments,
Departments 1 and 2. The company uses the FIFO method of costing.

In Department 1, materials are added as follows: 20% at the start, 50% when the
process is 3/5 completed and the balance when the process is 1/6 incomplete. In
Department 2, materials are added 1/3 when the process is 1/8 completed, ½ when the
process is 3/8 completed and the balance when the process is ¼ incomplete. In both
departments, conversion costs are applied proportionately throughout the process.

Data for September, 2014 are as follows:

Department 1 Department 2
Units
Unfinished on August 31 40,000 54,000
Stage of completion 5/8 15%
Transferred to next department 197,000
Transferred to finished goods 212,000
Completed but not transferred 5,000 3,000
Processed but not completed 18,000 ?
Stage of completion 4/5

Costs incurred during September

Materials 615,780 513,475
Labor 421,080 383,860
Factory overhead 287,100 225,800

Cost of unfinished units on August 31 184,900 63,270

 Of the units processed but not completed in Department 2, ¼ is 1/5 completed,
5/8 is 3/5 completed and the balance is 1/5 incomplete.

REQUIRED
Cost of production report
PROBLEM 6
The Hi-Salaried Gov Execs Company produces a certain product in two consecutive
departments, Department Hi and Department Gov. The company uses the FIFO method of
costing. In both departments, costs are applied evenly throughout the process.

Data for October, 2015 are as follows:

Department Hi Department Gov

U n i t s:
In process, beginning 30,000 (3/8) 36,000 (3/4)
Started in process ? ?
Finished and on hand 4,000 6,000
Transferred to finished goods 240,000
In process, end 18,000 (1/3) 40,000 (5/8)

Cost:
In process, beginning 92,000
Current month’s cost
Materials 995,000 366,000
Labor 621,875 219,600
Overhead 373,125 146,400

Unit cost this month from Department Hi is 25% higher than last month’s while unit
costs in Department Gov is 12.5% lesser than last month’s.

REQUIRED
1. Cost of production report
2. Journal entries