Question 1

Under the first-in, first-out (FIFO)  method, the current-period equivalent units of production for transferred in units in beginning inventory is zero because:

Accepted Answer

A)   these units are transferred back to the previous department for further processing in the current period.
B)   these units are expected to be sold by the receiving department without subjecting them to further processing.
C)   no additional costs for these units were transferred in this period.
D)   costs involved in inter-departmental transfers are accounted for only once when sales are made to customers.E) B) and C)
F) A) and C)

Question 2

Direct labor costs are accumulated in the Manufacturing Overhead account.

Accepted Answer

A) True 
 B)False

Question 3

In a process costing system, equivalent units must be calculated separately for materials and conversion costs.

Accepted Answer

A) True 
 B)False

Exam 20: Process Costing

Under the first-in, first-out (FIFO) method, the current-period equivalent units of production for transferred in units in beginning inventory is zero because:

Correct Answer
verified

Direct labor costs are accumulated in the Manufacturing Overhead account.

Correct Answer
verified

In a process costing system, equivalent units must be calculated separately for materials and conversion costs.

Correct Answer
verified

Exam 20: Process Costing

Under the first-in, first-out (FIFO) method, the current-period equivalent units of production for transferred in units in beginning inventory is zero because:

Correct AnswerverifiedShow Answer

Direct labor costs are accumulated in the Manufacturing Overhead account.

Correct AnswerverifiedShow Answer

In a process costing system, equivalent units must be calculated separately for materials and conversion costs.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified