cer Aa I Normal T No Spac... Heading 1 Heading 2 Titi Paragraph Materials: Opening Balance + New buys - Transfers out Ending Balance Box B Sales Cost of Goods Sold Gross Margin Corporate Overhead Earnings before Taxes (operating profit) Taxes Net Income Box D Fimshed Goods: Opening Balance + Transters in Transfers out Ending Balance Box C Work In Process: Opening Balance + Material in + Labour + Mfg Overhead Transfers out Ending Balance Answer: 1. What type of costing system is illustrated above on this page? 2. Whatis the correct ordering of the flow of boxes above example: B to D to C to A) ANSWER: Box D to B box A to C 3. True and False questions - Indicate True or False True False Question A. Inventory in "finished goods" includes direct material, direct labour, factory overhead and corporate overhead. B. Units transferred out of Box C will have material, labour and factory overhead in the transfer cost. C. Equivalent units of production are the portion of whole units that are complete with respect to either materials or conversion (directlabour and factory overhead) costs. D. Process costing is used for unique production jobs. E. Process costing and job costing assign the same costs to ending work in process inventory, F. FIFO costing includes beginning inventory costs in the equivalent per unit cost G. If material for 2000 products was added to Workin Process but conversion costs are 75% complete at month end, the equivalent units for allocating conversion costs incurred in the month are A = 2,000 or B = 1,500 units. Which is correct? H. The Finished Goods in Box Dreceived $50,000 of costs (Transferred in). Opening inventory was $20,000 and ending inventory was $10,000 Transferred out must be A = $50,000 or B = $60,000. Which is correct? A B A B o VE