$1.$ Which of the following is true of the FIFO method of costing?

a$.$ It treats total cost as if it were the current period$$s total manufacturing cost.

b$.$ It combines the cost incurred on the units in beginning work in process and the cost incurred on the units started and completed during the current period.

c$.$ It creates two categories of completed units, one for beginning work in process and the other for units started and completed during the current period.

d$.$ The average cost of the units in beginning work in process and the units started and completed in the current year is considered.

c

$2.$ Indigo Devices Corp. has $25,000$ units in process on September $1$ that are $70\%$ complete. In September, the company completed and transferred out $60,000$ units. The company has $12,000$ units in process on September $30$ that are $40\%$ complete. Calculate the equivalent units of Indigo Devices for September assuming the company uses the FIFO method of costing.

a$.35,000$ units

b$.39,800$ units

c$.60,000$ units

d$.47,300$ units

$3.$ A manufacturing company at the time of preparation of production report creates two categories of completed units namely, beginning work in process units and units started and completed during the period. It uses only current work and costs to calculate this period's unit cost. Which of the following methods of costing is the company using?

a$.$ First$-$in$,$ first$-$out method

b$.$ Weighted average method

c$.$ Job costing method

d$.$ Standard method