TRUE/FALSE. Write T if the statement is true and 'F' if the statement is false. 1) When calculating the costs to be transferred using the FIFO method, we should not include costs assigned in the previous period to units that were in process at the beginning of the current period but are now Included in the units transferred. 1) 2) 2) Weighted-average cost per equivalent unit is obtained by dividing the sum of costs for beginning work in process plus costs for work done in the current period by total equivalent units of work done to date. 3) In a period of rising prices, the weighted-average method will result in higher tax payments. 3) 4) The accuracy of the percentage of completion estimate of conversion costs depends on formulas used by cost accountants 4) 5) Under the FIFO method of process-costing, costs incurred and units produced in the current period 5) are used to calculate the cost per equivalent unit of work in the current period in contrast the weighted-average method which merges the units and costs of the previous period with that of the current period. 6) The weighted-average process costing method does not distinguish between units started in the previous period but completed during the current period and units started and completed during the current period. 6) 8) When there are beginning Inventories, it is assumed that the percentage of completion of the unfinished units is 100%. 7) The principal difference between process costing and job costing is that in job costing an averaging process is used to compute the unit costs of products or services. 7) 8) 10) Process-costing systems using standard costs record actual direct materials costs in Direct Materials Control and actual conversion costs in Conversion Costs Control with standard costs recorded in Work-in-Process. 9) Often the need for separate equivalent unit calculations for materials and for conversion cost is due to the fact that material is typically added throughout the production process while conversion costs are added at the beginning of the process. 9) 10) 11) A production cost worksheet is used to summarize total costs to account for, compute cost per equivalent unit, and assign total costs to units completed and to units in ending work-in-process. 11) 12) Partially completed units in ending work in process are 100 percent complete with regard to their direct materials costs if the direct materials are Introduced at the beginning of the process. 12) 13) With the weighted-average method, the costs in work in process (beginning work in process) when 13) the period starts are not considered when calculating the weighted-average cost per equivalent unit. 14) Underestimating the degree of completion of ending work in process leads to increase in operating income. 14) 15) When a company has no opening or ending inventory during the month, the cost per unit is calculated by dividing the total costs incurred in the perind by the total units produced during the period. 15) 16) Equivalent units is a derived measure of output calculated by converting the quantity of inputs into 16) the amount of completed output that could be produced with that quantity of input. 17) Standard costing is NOT possible in a firm that uses process costing. 17) 18) A hybrid-costing system is a variant of process-costing thal allows it to incorporate benefits of standard costing and activity-based costing 18) 19) A company that uses standard costing does so for budgeting purposes but cannot utilize standard costs in the general ledger. 19) 20) The weighted average method of process costing assigns the cost of equivalent units worked on during the CURRENT period first to complete beginning inventory, next to start and complete new units, and finally to units in ending work-in-process Inventory. 20)