1. ABC Company has the following production and cost data for September. Production: 2,400 units in beginning work in process that are 100% complete in terms of materials and 20% complete in terms of conversion costs; 7,930 units transferred out; and 7,110 units in ending work in process that are 100% complete in terms of materials and 40% complete in terms of conversion costs. Calculate the equivalent units of production for materials costs for the month of September.

2.

Why are materials requisition forms used less frequently in process costing?

	a.	Materials are only added at the beginning of production.
	b.	Requisitions are for larger quantities so fewer orders are needed.
	c.	Materials are rarely used in production.
	d.	There are no materials inventories because process costing uses a just-in-time system.

3. Which equation is correct?

	a.	Total units to be accounted for = beginning Work in Process units in ending Work in Process.
	b.	Total units to be accounted for = equivalent units + units in ending Work in Process.
	c.	Total units to be accounted for units in beginning Work in Process = units started into production.
	d.	Total units accounted for = units in beginning Work in Process + units in ending Work in Process.

4. Which one of the following is a consideration of CVP analysis?

	a.	The level of activity must remain constant over the relevant range.
	b.	Total fixed costs remain constant over the relevant range.
	c.	Cost behaviour can change as long as total costs remain the same at all activity levels.
	d.	Total variable costs remain constant over the relevant range.