PROCESS COSTING

If the beginning work in process equivalent units is 2500 units, work done in current period equivalent units is 3800 units and units completed in current period are 4000, then ending work in process equivalent units will be

• 1800

• 2300

• 10300

• 1500

A unit cost calculated in costing system, by assigning total costs incurred to many similar units is categorized as

• accounting period costing system

• process costing system

• job costing system

• none of above

If the beginning work in process equivalent units are 2500 units, work done in current period equivalent units are 3800 units and ending work in process equivalent units are 5000, then complete equivalent units in current period are

• 1800

• 1500

• 1300

• 1200

The total costs incur in a production process, is divided by total number of output units to calculate the

• cost of indirect labor

• cost of direct labor

• cost of direct material

• unit costs

Conversion costs include all manufacturing costs other than direct materials

• True

• False

The weighted average method combines beginning inventory and current production to compute cost per unit of production.

• True

• False

Abnormal continuous losses are absorbed by all units in ending inventory and transferred out on a EUP basis.

• True

• False

Equivalent units of production are equal to the

• units completed by a production department in the period.

• number of units worked on during the period by a production department

• number of whole units that could have been completed if all work of the period had been used to produce whole units.

• identifiable units existing at the end of the period in a production department.

In a FIFO process costing system, which of the following are assumed to be completed first in the current period?

• units started this period

• units started last period

• units transferred out

• units still in process

The FIFO method combines beginning inventory and current production to compute cost per unit of production.

• True

• False