Reference no: EM132567446

Question 1. Statement 1: Under FIFO costing, equivalent units is equal to completed units plus work done on ending work in process inventory.

Statement 2: If there is no work in process inventory at the beginning of the period, equivalent units is equal under both FIFO and average method.

A. Both are statements are false

B. Both are statements are true

C. Only statement 1 is true

D. Only statement 2 is true

Question 2. This is a type of process costing where materials, labor and overhead are put in process at different stages of production

A. FIFO Method

B. Uneven Application

C. Uniform Application

D. Weighted Average Method

Question 3. Which of the following statements is not a characteristic of a process costing system?

A. Cost of production report is used to provide information

B. Emphasis is given to customer specifications rather than to production for a given period

C. The work in process inventory at the end of the period are assigned costs according to its stage of completion

D. Units during production are expressed in terms of its equivalent units

Question 4. Variable cost is characterized by the following EXCEPT:

A. Costs tend to vary or change in total amount with the volume of activity in an indirect proportion.

B. Comparatively constant per unit in the face of changing volume.

C. It is easy and there is a reasonable assignment of costs to operating departments.

D. Control of their incurrence by the responsible department head.

Question  Ace Manufacturing has materials equivalent units for September at 82,500 units. Material costs beginning is $165,000. Materials added this month is $660,000. Cost of the units transferred to the next department is $247,500. How much is the material unit cost in September?

A. $ 2

B. $ 3

C. $ 8

D. $ 10