Reference no: EM132742254

Problem 1: When FIFO costing method is used, the costs of the beginning work in process are:

a. Added to current costs.

b. Averaged with other costs to arrive at total costs.

c. Kept separate from the costs of the current period.

d. Subtracted from the current month

Problem 2: Which of the following is a true statement regarding joint costs?

a. Joint costs are easily traced to individual products.

b. The primary reason for allocating joint costs is to determine whether a product should be sold immediately or processed further.

c. The primary reason for allocating joint costs is for inventory valuation for financial report-ing.

d. Joint costs consist only of overhead, never of materials or direct labor.

e. None of the above statements are true