CUSTOM COST ACCOUNTING 15E
15th Edition
ISBN: 9781269831338
Author: Horngren
Publisher: PEARSON C
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Chapter 17, Problem 17.16MCQ
Assuming beginning work in process is zero, the equivalent units of production computed using FIFO versus weighted average will have the following relationship:
- 1. FIFO equivalent units will be greater than weighted-average equivalent units.
- 2. FIFO equivalent units will be less than weighted-average equivalent units.
- 3. Weighted-average equivalent units are always greater than FIFO equivalent units.
- 4. Weighted-average equivalent units will be equal to FIFO equivalent units.
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Assuming beginning work in process is zero, the equivalent units of production computed using FIFO versus weighted average will have the following relationship:
FIFO equivalent units will be greater than weighted-average equivalent units.
FIFO equivalent units will be less than weighted-average equivalent units.
Weighted-average equivalent units are always greater than FIFO equivalent units.
Weighted-average equivalent units will be equal to FIFO equivalent units.
The first step in applying the average cost method when computing for the unit cost is to:
a. Add the beginning work in process costs to the current period’s production costs.
b. Divide the current period’s production costs by the equivalent units.
c. Subtract the beginning work in process costs from the current period’s production costs.
d. A and B
Question 11
Assuming beginning work in process is zero, the equivalent units of production computed using FIFO versus weighted average will have the following relationship:
Group of answer choices
FIFO equivalent units will be greater than weighted-average equivalent units.
Weighted-average equivalent units will be equal to FIFO equivalent units.
Weighted-average equivalent units are always greater than FIFO equivalent units.
FIFO equivalent units will be less than weighted-average equivalent units.
Chapter 17 Solutions
CUSTOM COST ACCOUNTING 15E
Ch. 17 - Give three examples of industries that use...Ch. 17 - In process costing, why are costs often divided...Ch. 17 - Explain equivalent units. Why are equivalent-unit...Ch. 17 - What problems might arise in estimating the degree...Ch. 17 - Name the five steps in process costing when...Ch. 17 - Name the three inventory methods commonly...Ch. 17 - Describe the distinctive characteristic of...Ch. 17 - Describe the distinctive characteristic of FIFO...Ch. 17 - Prob. 17.9QCh. 17 - Identify a major advantage of the FIFO method for...
Ch. 17 - Identify the main difference between journal...Ch. 17 - The standard-costing method is particularly...Ch. 17 - Why should the accountant distinguish between...Ch. 17 - Transferred-in costs are those costs incurred in...Ch. 17 - Theres no reason for me to get excited about the...Ch. 17 - Assuming beginning work in process is zero, the...Ch. 17 - The following information concerns Westheimer...Ch. 17 - Sepulveda Corporation uses a process costing...Ch. 17 - Penn Manufacturing Corporation uses a...Ch. 17 - Kimberly Manufacturing uses a process-costing...Ch. 17 - Equivalent units, zero beginning inventory....Ch. 17 - Journal entries (continuation of 17-21). Refer to...Ch. 17 - Zero beginning inventory, materials introduced in...Ch. 17 - Weighted-average method, equivalent units. The...Ch. 17 - Weighted-average method, assigning costs...Ch. 17 - FIFO method, equivalent units. Refer to the...Ch. 17 - FIFO method, assigning costs (continuation of...Ch. 17 - Operation costing. The Carter Furniture Company...Ch. 17 - Weighted-average method, assigning costs....Ch. 17 - FIFO method, assigning costs. 1. Do Exercise 17-29...Ch. 17 - Transferred-in costs, weighted-average method....Ch. 17 - Transferred-in costs, FIFO method. Refer to the...Ch. 17 - Operation costing. Egyptian Spa produces two...Ch. 17 - Standard-costing with beginning and ending work in...Ch. 17 - Equivalent units, comprehensive. Louisville Sports...Ch. 17 - Weighted-average method. Hoffman Company...Ch. 17 - Journal entries (continuation of 17-36). Required...Ch. 17 - FIFO method (continuation of 17-36). 1. Do Problem...Ch. 17 - Transferred-in costs, weighted-average method...Ch. 17 - Transferred-in costs, FIFO method (continuation of...Ch. 17 - Weighted-average method. McKnight Handcraft is a...Ch. 17 - FIFO method (continuation of 17-41). 1. Complete...Ch. 17 - Transferred-in costs, weighted-average method....Ch. 17 - Transferred-in costs, FIFO method. Refer to the...Ch. 17 - Standard costing, journal entries. The Warner...Ch. 17 - Multiple processes or operations, costing. The...Ch. 17 - Benchmarking, ethics. Amanda McNall is the...
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Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- The cost behavior patterns below are lettered A through H. The vertical axes of the graphs represent total dollars of expense, and the horizontal axes represent production in units, machine hours, or direct labor hours. In each case, the zero point is at the intersection of the two axes. Each graph may be used no more than once. Required: Select the graph that matches the lettered cost described here. a. Depreciation of equipmentthe amount of depreciation charged is computed based on the number of machine hours that the equipment was operated. b. Electricity billflat fixed charge, plus a variable cost after a certain number of kilowatt hours are used. c. City water billcomputed as follows: d. Depreciation of equipmentthe amount is computed by the straight-line method. e. Rent on a factory building donated by the citythe agreement calls for a fixed fee payment, unless 200,000 labor hours are worked, in which case no rent need be paid. f. Salaries of repair workersone repair worker is needed for every 1,000 machine hours or less (i.e., 0 to 1,000 hours requires one repair worker, 1,001 to 2,000 hours requires two repair workers, etc.).arrow_forwardWith nonuniform inputs, the cost of EWIP is calculated by a. adding the materials cost to the conversion cost. b. subtracting the cost of goods transferred out from the total cost of materials. c. multiplying the unit cost in each input category by the equivalent units of each input found in EWIP. d. multiplying the total unit cost by the units in EWIP. e. None of these.arrow_forwardUnder what conditions may the unit costs of materials, labor, and overhead be computed by using only one equivalent production figure?arrow_forward
- What would be the effect on the unit cost of finished goods if an estimate of the stage of completion of work in process was: too high? too low?arrow_forwardFor the weighted average method of process costing, the: total cost of completed units equals the total cost of ending work in process. unit cost of materials equals the unit cost for conversion costs. equivalent units for conversion costs are higher than the equivalent units for materials. flow of physical units produces the same results as the computations for equivalent units. None of the above is true.arrow_forwardIn computing the current period’s manufacturing cost per equivalent unit, the FIFO method of process costing considers current period costs a. Only b. Plus cost of beginning work in process inventory c. Less cost of beginning work in process inventory d. Plus cost of ending work in process inventoryarrow_forward
- The FIFO method of process costing will produce the same cost of goods transferred out amount as the weighted average method when a. the goods produced are homogeneous b. there is no beginning Work in Process Inventory. c. there is no ending Work in Process Inventory. d. beginning and ending Work in Process Inventories are each 50 percent complete.arrow_forwardComputing Equivalent Units, FIFO and Weighted Average Cost Methods Assume each of the following conditions concerning the data given: All materials are added at the beginning of the process. All materials are added at the end of the process. (Note that this would have to be a department subsequent to the first department for all materials to be added at the end of the process, but ignore that fact for purposes of this solution.) Half of the materials are added at the beginning of the process, and the balance of the materials is added when the units are three-fourths completed. In all cases, labor and factory overhead are added evenly throughout the process.arrow_forwardtrue (T) or false (F) The cost per equivalent unit is computed as the total costs of a process divided by the number of equivalent units passing through that process.arrow_forward
- Under Weighted Average Method, the EUP, Finished and Transferred was how many units? Under Weighted Average Method, the EUP for the Work in Process End was how many units? Under Weighted Average Method, the EUP, what was the total unit cost?arrow_forwardThe term given to units that represents the number of completed units that is equal, in terms of production inputs, to a given number of partially completed units is: a.Units started and completed b.Units completed c.Equivalent units d.Total units in productionarrow_forwardThe weighted-average method of process costing: a. can be used under any cost flow assumption. b. does not require the use of predetermined overhead rates. c. keeps costs in the beginning inventory separate from current period costs. d. does not consider the degree of completion of units in the beginning work in process inventory when computing equivalent units of production.arrow_forward
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