Multiple choice questions:

1) The direct labor costs and manufacturing overhead costs required to produce finished goods from raw materials are called:

A) Transferred in costs.

B) Cost of sales.

C) Finished goods costs.

D) Conversion costs.

2) Under process costing, the total production costs incurred must be split between the units that have been completed in that process and transferred to the next process and the:

A) Finished Goods Inventory if it is the first process.

B) Units not completed and remaining in Work-in-Process Inventory for that department.

C) Cost of Goods Sold when the units are sold.

D) Work-in-Process Inventory of the previous department when there are no sales.

3) If 20,000 units are 60% complete with respect to direct materials, then the equivalent units of production for direct materials are:

A) 20,000 units.

B) 12,000 units.

C) 8,000 units.

D) 28,000 units