3. Gordon Company uses the process cost system. Total material costs - $36,000 Total conversion costs - $55,300 Equivalent units of production for materials - 12,000 Equivalent units of production for conversion costs - 14,000 What is the unit cost for total manufacturing costs? a. $3.51 b. $6.95 c. $7.02 d. $3.95 10. Which of the following statements is NOT correct? a. Standards for direct materials, direct labor, and factory overhead are separated into standard price and standard quantity because the department responsible for their control is normally different. b. Some companies include standard costs in their accounts by recording standard costs and variances at the same time the actual product costs are recorded. c. Standard costs may never be used in financial statements prepared for external users. d. If an unfavorable variance is offset by a favorable variance, managers may overlook situations that need to be investigated. 12. Which section of the Statement of Cash Flows is used to evaluate a company's ability to continue as a going concern? a. Significant non-cash investing and financing activities b. Operating c. Financing d. Investing 16. Because of automation, which component of product cost is declining? a. Advertising b. Factory overhead Direct materials d. Direct labor C