Multiple Choice Questions:

1) The beginning inventory costs and current period costs are combined to determine the average cost of equivalent units of production under the:

A) Equivalent unit’s method.

B) Conversion costs method.

C) first-in, first-out method.

D) weighted-average method.

2) Which of the following formulae is used to calculate the cost per equivalent unit of production (EUP) for direct materials?

A) Cost per EUP for direct materials = Total conversion costs ÷ Equivalent units of production for direct materials

B) Cost per EUP for direct materials = Total direct materials costs ÷ Equivalent units of production for direct materials

C) Cost per EUP for direct materials = Total transferred in costs ÷ Equivalent units for transferred in

D) Cost per EUP for direct materials = Total direct materials costs ÷ Equivalent units of production for conversion costs

3) The equivalent units of production for transferred in units are always 100% because:

A) They are the finished goods purchased and transferred to the next process.

B) They are considered 100% complete with respect to the entire production process.

C) They were 100% complete with respect to the previous process.

D) Such units are not utilized for production in the subsequent processes.