1. If ending inventory consists of 2,600 units which are 100% complete with respect to materials and 30% complete with respect to conversion costs, the number of equivalent units for materials and for conversion costs are

   	a.	2,600 and 780, respectively.
   	b.	780 and 8,667, respectively.
   	c.	2,600 and 8,667, respectively.
   	d.	2,600 and 2,600, respectively.

Product costs

	a.	are also called manufacturing costs.
	b.	are considered an asset until the finished goods are sold.
	c.	become an expense when the goods are sold.
	d.	All of the above answers are correct.

1. Which of the following is an example of a manufacturing overhead cost?

   	a.	Security at the manufacturing plant
   	b.	Fabric used to produce shirts
   	c.	Cost of shipping product to customers
   	d.	The salary of the president of the company