1. ABC Desserts has 3,200 quarts of ice cream in WIP Inventory, with all materials already added. The ice cream is 75% through the process. Assume all conversion costs are added evenly throughout the process. What are the equivalent units in ending WIP Inventory for materials?

0

3,200

800

2,400

2. If conversion costs are added evenly throughout the production process, and the units have made it 50% of the way through the production process, then the percentage completion for direct materials is

0%.

100%.

cannot determine.

50%.

3. In a process system with multiple processes, which of the following is included in the costs transferred out of the second process of a three-step production process?

Costs incurred in the current process only

Costs of the previous process combined with costs of the current process

Costs of the current process combined with costs of the next process

Costs incurred in the previous process only