Chapter 11 Average and FIFO Costing335MULTIPLE CHOICE -THEORIES1. Which of the following characteristics applies in process costing but not to joborder costing?a. [dentifiable batches of production.b. Equivalent units of productionc. Averaging processd. Use of standard cost2. An equivalent unit of material or conversion cost is equal toa. The amount of material or conversion cost necessary to complete one unit ofproduction.b. A unit of work in process inventory.C. The amount of material or conversion cost necessary to start a unit ofproduction into work in processd. Fifty percent of the material or conversion cost of a unit of finished goodsinventory3. Assuming that there was no beginning in process inventory and the ending workin process inventory is 100% complete as to material costs, the number ofequivalent units as to materials costs would bea. The same as the units placed in processb. The same as the units completedc. Less than the units placed in processd. Less than the units completed4. What are transferred-in costs as used in a process costing system?a. Labor that is transferred from another department within the same plantinstead of hiring temporary workers from the outside.b. Cost of the production of a previous internal process that is subsequently´used in a succeeding internal process.C. Supervisory salaries that are transferred from an overhead cost center to aproduction cost center.d. Ending work in process inventory of a previous process that will be used in asucceeding process Cost Accounting5. Spoilage from a manufacturing process was discovered during an inspection ofwork in process. In a process costing system, the cost of the spoilage would beadded to the cost of the good units produced if the spoilage isAbnormalNormala..NoYesb..NoNoC..YesYesd..YesNo6. In the computation of manufacturing cost per equivalent unit, the weighted-average method of process costing considersa. Current costs onlyb. Current costs plus cost of ending work-in-process inventoryc. Current costs plus cost of beginning work-in-process inventoryd. Current costs less cost of beginning work-in-process inventory7. When using the first-in-first-out method of process costing, the total equivalentunits of production for a given period of time is equal to the number of unitsa. In work in process at the beginning of the period times the percent of worknecessary to complete the items, plus the number of units started during theperiod, less the number of units remaining in work in process at the end ofthe period times + the percent of work necessary to complete the items.b. In work in process at the beginning of the period, plus the number of units.started during the period, plus the number of units remaining in work inprocess at the end of the period times the percent of work necessary tocomplete the itemsC. Started into process during the period, plus the number of units in process atthe beginning of the period.d. Transferred out during the period, plus the number of units remaining inwork in process at the end of the period times the percent of work necessaryto complete the'item.

Name: Chapter 11 Average and FIFO Costing335MULTIPLE CHOICE -THEORIES1. Whi
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Description: Chapter 11 Average and FIFO Costing335MULTIPLE CHOICE -THEORIES1. Which of the following characteristics applies in process costing but not to joborder costing?a. [dentifiable batches of production.b. Equivalent units of productionc. Averaging proce