# Chapter 6 Guided Practice

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## 6GP.1 Equivalent Units – Weighted Average

### 6GP.1.E1

The firm Londres uses the weighted average method of process costing. This firm has 5,500 units in ending work-in-process inventory that are 100% complete with respect to materials and 40% complete with respect to conversion costs.

Required

What are the equivalent units in ending inventory with respect to direct materials and conversion costs?

### 6GP.1.M1

The firm Rondon uses the weighted average method of process costing. It had 5,000 units in beginning WIP inventory. These units were 50% complete with respect to direct materials and 75% complete with respect to conversion costs. The firm started 40,000 units this period and has 10,000 units in ending WIP inventory. Ending WIP units are 25% complete with respect to materials and 50% complete with respect to conversion costs.

Required

What are the total equivalent units with respect to direct materials and conversion costs?

## 6GP.2 Equivalent Units – FIFO

### 6GP.2.E1

Use the same information as Problem 6GP.1.E1 for this problem, except assume Londres uses the FIFO method of process costing.

Required

What are the equivalent units in ending inventory with respect to direct materials and conversion costs?

### 6GP.2.M1

Use the same information as Problem 6GP.1.M1 for this problem, except assume Rondon uses the FIFO method of process costing.

Required

What are the total equivalent units with respect to direct materials and conversion costs?

## 6GP.3 Unit Rates – Weighted Average

### 6GP.3.E1

The firm Hapon uses the weighted average method for process costing. Hapon has two departments: the Starting Department and the Finishing Department. Direct materials are all added at the beginning of the production process in the Finishing Department. The Starting Department completed 100,000 units this period and has 3,500 units in ending inventory that are halfway through the production process.

This period, the Starting Department incurred \$50,000 of direct materials costs, \$30,000 of direct labor costs, and \$30,000 of overhead costs. At the beginning of the period, the department had a \$5,000 balance in beginning WIP cost, including \$2,500 direct materials costs, \$1,250 of direct labor costs, and \$1,250 overhead costs.

Required

What are the per equivalent unit rates this period for direct materials and for conversion costs in Hapon’s Starting Department?

### 6GP.3.M1

Use the information in 6GP.3.E1. Assume Finishing Department has 1,000 units in BWIP, which amount to \$1,200 in BWIP costs.

Required

Do we have enough information to determine the Finishing Department’s equivalent unit rate for transferred-in costs this period? If so, what is the rate? If not, what information do we need?

## 6GP.4 Unit Rates FIFO

### 6GP.4.E1

The firm Thames uses the FIFO method of process costing. It has the following data for direct materials costs and equivalent units.

March 1: 2,000 units in WIP, 40% complete at \$5,000 direct materials costs.
March 30: 1,000 units in WIP, 60% complete.

The firm’s total equivalent units (as defined by FIFO) are 48,000 equivalent units. The firm incurs \$336,000 of direct materials costs this period.

Required

What is the equivalent unit rate for direct materials costs in March?

### 6GP.4.M1

Thames has \$5,000 of conversion costs in March’s beginning WIP (for 2,000 units that are 25% complete with respect to conversion costs). The firm incurred \$500,000 to complete 45,000 units. 1,000 units are in ending WIP. These ending WIP units are 50% complete with respect to conversion costs.

Required

What are Thames’s conversion costs per equivalent unit for March?

## 6GP.5 Cost of Units Completed and of EWIP Units – Weighted Average

### 6GP.5.E1

A firm called Temuzu uses weighted average process costing. The firm has one department.

For this period, Temuzu calculates a direct materials rate of \$15 per equivalent unit and a conversion cost rate of \$20 per equivalent unit.

The firm began the period with 50,000 units in BWIP (50% complete with respect to direct materials and conversion costs), ended the period with 60,000 units in EWIP (75% complete with respect to direct materials and conversion costs), and started 550,000 units during the period.

Required

(A) What is this department’s EWIP balance?

(B) What is the cost of the units completed this period?

### 6GP.5.M1

The firm 5Rings2012 uses the weighted average method of process costing. This firm’s second department in the process has the following information from this period.

• Materials, including transferred in materials, are all added at the beginning of the process.
• 1,000 units in BWIP: 50% complete with respect to conversion costs, \$650 in DM costs, \$1,500 in CC, \$2,125 in TI costs.
• 10,500 units started.
• \$12,000 in DM costs this period. \$25,000 in CC this period. \$18,000 in TI costs this period.
• 1,500 units in EWIP: 40% complete with respect to conversion costs.

Required

(A) What is this department’s EWIP balance?

(B) What is the cost of the units completed and transferred out of the department this period?

## 6GP.6 Cost of Units Completed and of EWIP Units – FIFO

### 6GP.6.E1

Use the same information provided about Temuzu in problem 6GP.5.E1, but now assume Temuzu uses the FIFO method (assume the rates given are correct for FIFO now). Also, assume there are \$1,800,000 in BWIP at the beginning of the period.

Required

(A) What is this department’s EWIP balance?

(B) What is the cost of the units completed this period?

### 6GP.6.M1

Use the same information provided about 5Rings2012 in problem 6GP.5.M1, but now assume the firm uses the FIFO method.

Required

(A) What is this department’s EWIP balance?

(B) What is the cost of the units completed and transferred out of the department this period?