Respond that the following statement is TRUE or FALSE:

1) Conversion costs include the costs of purchasing and converting raw materials into finished products.

Multiple Choice Questions:

2) In a process costing system, production costs are:

A) Adjusted and allocated by jobs.

B) Not inventoried.

C) Directly shown on the income statement.

D) Accumulated by departments.

3) Which of the following best describes the term equivalent units?

A) Partially completed units expressed in terms of fully complete units of output

B) Partially completed units of output that will be sold as is

C) Substitute of units that are partially completed

D) Different types of units that have same selling price

4) Which of the following statements correctly describes the term conversion costs?

A) The cost to convert finished goods to sales to customers

B) The cost incurred for direct and indirect materials during production

C) The cost of direct materials, direct labor, and manufacturing overhead costs incurred during production

D) The cost of direct labor combined with manufacturing overhead

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