Question 14 of 20
Equivalent units of production usually are determined for:
A. direct materials only.
B. direct materials and conversion costs.
C. direct materials and direct labor costs only.
D. conversion costs only.
Question 15 of 20
Measures of equivalent production are necessary in process costing because:
A. job order costing procedures cannot be applied.
B. unit costs are computed by departments or processes at fixed time intervals.
C. perpetual inventories are not employed in process plants.
D. production methods are more complex than in job order costing systems.
Question 16 of 20
Which of the following applies to process costing but NOT to job order costing?
A. Only one Work in Process Inventory account
B. Equivalent production units
C. Production of unique items
D. Multiple unit job order
Question 17 of 20
An advantage of using the average costing method to process costing as opposed to the FIFO costing method is that it:
A. is a little easier to work with.
B. is more accurate.
C. costs less to utilize.
D. requires little knowledge of process costing.
Question 18 of 20
The computation of equivalent units is exactly the same under the FIFO costing method and the average costing method when there is no:
A. ending work in process inventory.
B. ending finished goods inventory.
C. beginning finished goods inventory.
D. beginning work in process inventory.
Question 19 of 20
To find cost per equivalent unit of production using the average costing method, the: amount of equivalent units is divided:
A. by costs from the current period.
B. into costs from the current period.
C. into total costs to be accounted for.
D. by total costs to be accounted for.
Question 20 of 20
Which of the following statements about a department's costs per equivalent unit calculated using the average costing method compared with a FIFO costing method is true?
A. They could be higher or lower.
B. They would be the same.
C. They would be lower.
D. They would be higher.