True / False and 2 short answer type questions

HRM 422C (001) Test #1 - (Fern) Question D - Sample costing flow for a product (10 marks) Box A Materials Opening Halance + New buys - Transfers out Ending Balance Rax B Sales Cost of Goods Sold Gross Margin -Corrate Overhead Earnings before Taxes operating profit) Taxes Net Income Box D Finished Goods Openint Balance - Transfers in Transfers out Endins Balance Box Work In Process Opening Balance - Material MIG Overhead Transfers cut Ending Balance Answer: 1. What type of costing system is illustrated above on this page? 2. What is the correct ordering of the flow of boxes above (example:BtoD to C to A) True Fase 3. True and False questions - Indicate True or False Question A. Inventory in "lirushed goods" includes direct material, direct labour, factory overhead and corporate overhead. B. Units transferred out of Box C will have material labour and factory overhead in the transfer cost. C. Equivalent units of production are the portion of whole units that are complete with respect to either materials or conversion (direct labour and factory overhead) costs. D. Process costing is used for unique production jobs. E. Process costing and job costing assign the same costs to ending work in process inventory F. FIFO costing includes beginning inventory costs in the equivalent per unit cost calculation. Gli material for 2000 products was added to Work in Process but conversion costs are 75% complete at month end, the equivalent units for allocating conversion costs incurred in the month are A = 2,000 B HRM 422C (001) Test #1 - (Fern) or B = 1,500 units. Which is correct? H. The Finished Goods in Box D received $50,000 of costs (Transferred in). Opening inventory was $20,000 and ending inventory was $10,000. Transferred out must be A = $50,000 or B = $60,000. Which is correct? B