1. In process costing, if the units in beginning inventory are at less than 100% completion, what will be the cost of production per equivalent unit for the period under weighted average costing during periods of rising prices?
a. The same as the cost per equivalent unit under FIFO
b. Higher than the cost per equivalent unit under FIFO
c. The relationship is indeterminate
d. Lower than the cost per equivalent unit under FIFO

2. In process costing, the journal entry to record factory overhead applied would include which of the following?
a. A debit to work in process
b. A credit to work in process
c. A debit to cost of goods sold
d. A credit to cost of goods sold

Use the following information to answer Questions.

The information below pertains to production activities in the refi ning department of Burn Corporation. All units in work in process (WIP) were costed using the FIFO cost flow assumption.

3. What were the conversion costs per equivalent unit of production last period and this period, respectively?
a. $1.10 and $1.30
b. $1.10 and $1.45
c. $1.30 and $1.30
d. $1.30 and $1.43

Transcribed Image Text:

Percentage of Conversion Completion Refining Department Units Costs 80% $22,000 WIP, February 1 25,000 $143,000 Units started and cost 135,000 incurred during February 100,000 Units completed and transferred to the mixing department $? WIP, February 28 50%