Question 1

When indirect materials are issued to production,the Raw Materials Inventory account is credited.

Accepted Answer

A) True 
 B)False

Question 2

The first-in-first-out (FIFO) method creates better month-to-month cost comparisons than the weighted-average method ________.

Accepted Answer

A)  as it does not recognize transferred in units from other processes
B)  when there are substantial quantities of units in process at the end of the period
C)  because it merges costs from the prior period with the current period
D)  as it is used by industries that do not experience significant cost changesE) A) and B)
F) None of the above

Question 3

During August,the Filtering Department of Olive Inc.had beginning transferred in balance of 200 units with costs of $50,000.During the month,it started and completed 250 units.It had 50 units in the ending Work-in-Process Inventory.What is the number of equivalent units of production for transferred in units in the Filtering Department in August under the first-in-first-out (FIFO) method?

Accepted Answer

A)  200 units
B)  500 units
C)  300 units
D)  100 unitsE) All of the above
F) B) and D)

Question 4

Under the first-in-first-out (FIFO) method,the current-period equivalent units of production for transferred in units in beginning inventory is zero because ________.

Accepted Answer

A)  these units are transferred back to the previous department for further processing in the current period
B)  these units are expected to be sold by the receiving department without subjecting them to further processing
C)  no additional costs for these units were transferred in this period
D)  costs involved in inter-departmental transfers are accounted for only once when sales are made to customersE) A) and B)
F) C) and D)

Exam 18: Process Costing

When indirect materials are issued to production,the Raw Materials Inventory account is credited.

Correct Answer
verified

The first-in-first-out (FIFO) method creates better month-to-month cost comparisons than the weighted-average method ________.

Correct Answer
verified

Under the first-in-first-out (FIFO) method,the current-period equivalent units of production for transferred in units in beginning inventory is zero because ________.

Correct Answer
verified

Correct Answer
verified

Exam 18: Process Costing

When indirect materials are issued to production,the Raw Materials Inventory account is credited.

Correct AnswerverifiedShow Answer

The first-in-first-out (FIFO) method creates better month-to-month cost comparisons than the weighted-average method ________.

Correct AnswerverifiedShow Answer

Under the first-in-first-out (FIFO) method,the current-period equivalent units of production for transferred in units in beginning inventory is zero because ________.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified