Answer the following theories with solution

MULTIPLE CHOICE 1. In a process costing system that assumes that normal spoilage occurs at the end of a process, the costs attributable to normal spoilage should be assigned to: a. ending work in process inventory. b. cost of goods manufactured and ending work in process inventory. C. cost of goods completed. d. a specific loss account highlighting the inefficiencies. 2. An equivalent unit of material or conversion cost is defined as: a. the amount of material or conversion cost necessary to complete one unit of production. b. a unit of work in process inventory. C. the amount of material or conversion cost necessary to start a unit or production. d. 50% of the material or conversion cost of a unit of finished goods inventory assuming a linear production pattern. 3. In a process costing system, how is the unit cost affected in a cost of production report when materials are added in a department subsequent to the first department and the added materials result in additional units? a. It causes an increase in the preceding department's unit cost. b. It causes a decrease in the preceding department's unit cost that requires an adjustment of the transferred-in cost. C. It causes an increase in the preceding department's unit cost but does not require an adjustment of the transferred-in cost. d. It causes a decrease in the preceding department's unit cost but does not require an adjustment of the transferred-in unit cost. 4. Which of the following does not occur with process costing? a. Allocation of on a periodic basis. b. Allocation of cost upon completion of job. C. Allocation of cost with regards to stage of completion. d. Calculation of equivalent units