Select the best answer for each of the following multiple-choice questions. a. Under which of the following
Question:
Select the best answer for each of the following multiple-choice questions.
a. Under which of the following conditions will the first-in, first-out method of process costing produce the same cost of goods manufactured amount as the weighted-average method?
(1) When goods produced are homogeneous.
(2) When there is no beginning inventory.
(3) When there is no ending inventory.
(4) When beginning and ending inventories are each 50 percent complete.
b. An error was made in the computation of the percentage of completion of the current year's ending work in process inventory. The error resulted in assigning a lower percentage of completion to each component of the inventory than actually was the case. Assume there was no beginning inventory. What is the effect of this error upon:
(1) The computation of total equivalent units?
(2) The computation of costs per equivalent unit?
(3) Costs assigned to cost of goods transferred out for the period?
c. In computing the cost per equivalent unit, the weighted-average method considers:
(1) Current costs only.
(2) Current costs plus cost of beginning work in process inventory.
(3) Current costs plus cost of ending work in process inventory.
(4) Current costs less cost of beginning work in process inventory.
d. When using the FIFO method of process costing, total equivalent units produced for a given period are equal to the number of units:
(1) Started and completed during the period, plus the number of units in beginning WIP, plus the number of units in ending work in process.
(2) In beginning WIP plus the number of units started during the period, plus the number of units remaining in ending WIP times the percent of work necessary to complete the items.
(3) In beginning WIP times the percent of work necessary to complete the items, plus the number of units started and completed during the period, plus the number of units started this period and remaining in ending WIP times the percent of work necessary to complete the items.
(4) Transferred out during the period plus the number of units remaining in ending WIP times the percent of work necessary to complete the items.
(5) None of these.
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