Multiple Choice Questions: 1) The beginning inventory costs and current period costs are combined to determine the
Question:
Multiple Choice Questions:
1) The beginning inventory costs and current period costs are combined to determine the average cost of equivalent units of production under the:
A) Equivalent unit’s method.
B) Conversion costs method.
C) first-in, first-out method.
D) weighted-average method.
2) Which of the following formulae is used to calculate the cost per equivalent unit of production (EUP) for direct materials?
A) Cost per EUP for direct materials = Total conversion costs ÷ Equivalent units of production for direct materials
B) Cost per EUP for direct materials = Total direct materials costs ÷ Equivalent units of production for direct materials
C) Cost per EUP for direct materials = Total transferred in costs ÷ Equivalent units for transferred in
D) Cost per EUP for direct materials = Total direct materials costs ÷ Equivalent units of production for conversion costs
3) The equivalent units of production for transferred in units are always 100% because:
A) They are the finished goods purchased and transferred to the next process.
B) They are considered 100% complete with respect to the entire production process.
C) They were 100% complete with respect to the previous process.
D) Such units are not utilized for production in the subsequent processes.
Accounting Business Reporting for Decision Making
ISBN: 9780730302414
4th edition
Authors: Jacqueline Birt, Keryn Chalmers, Albie Brooks, Suzanne Byrne, Judy Oliver