Materials purchased on account during the month amounted to $180,000. Materials requisitioned and placed in production totaled S165,000. From the following, select the entry to record the transaction on the day the materials were bought. 165.000 Accounts Payable 180,000 Materials 180,000 Accounts Payable 180,000 Cash 165,000 180,000 180,000 180,000 A. Materials C. Materials D. Materials 26 The four steps necessary to determine the cost of goods completed and the ending inventory valuation in a process cost system are I. allocate costs to transferred and partially completed units 2. determine the units to be assigned costs 3. determine the cost per equivalent unit 4. calculate equivalent units of production The correct ordering of the steps A. 2, 4, 3, 1 B. 2, 3. 1, 4 C. 4, 2. 3.1 D. 2. 3, 4, I 27 Both job order and process cost accounting use equivalent units of production to determine costs. A. True B. False Custom-made goods would be accounted for using a process costing system A. True B. False 29 As production increases, what should happen to the variable costs per unit? A. Stay the same B. Either increase or decrease, depending on the fixed costs C. Increase D. Decrease 30 In cost-volume-profit analysis, all costs are classified into the following two categories: A. mixed costs and variable costs B. variable costs and fixed costs C. sunk costs and fixed costs D. discretionary costs and sunk costs 31 A rental cost of $20,000 plus S.70 per machine hour of use is an example of a mixed cost. A. True B. False 32. On the variable costing income statement, the figure representing the difference between the contribution margin and income from operations is the fixed manufacturing costs and fixed selling and administrative expenses. A. True B. False Page 4 c