DA cca d AaBbc 1 Normal 1 No Spac... Heading 1 Heading 2 Subtitle Title Subtle E Paragraph Styles Answer: C costs. 24) Which of the following statements is true of conversion costs? A) Estimating the degree of completion is usually easier for direct material costs than for conversion B) The calculation of equivalent units is relatively easy for the textile industry. C) The conversion cost needed for a completed unit and the conversion cost in a partially completed unit can always be measured accurately. D) If conversion costs are added evenly during the assembly we can conclude that there are more than one indirect-cost category Answer: I 25) A major advantage of using the FIFO process-costing method is that: A) FIFO makes the unit cost calculations simpler B) in contrast with the weighted average method, FIFO is considered GAAP compliant C) FIFO provides managers with information about changes in the costs per unit from one period to the D) in the period of rising prices, it leads to lower operating income and lower tax payments, saving the company cash and increasing the company's value next Answer: 26) The Swivel Chair Company manufacturers a standard recliner. During February, the firm's Assembly Department started production of 145,000 chairs. During the month, the firm completed 184,000 chairs and transferred them to the Finishing Department. The firm ended the month with 19,000 chairs in ending inventory. All direct materials costs are added at the beginning of the production cycle. Weighted average costing is used by Swivel. What were the equivalent units for materials for February? A) 203,000 chairs B) 184,000 chairs C) 164,000 chairs D) 191,250 chairs