Problem 2 True/False Questions Instruction: In the space provided before the statement, write T if the statement is correct or Fif the statement is incorrect. _1. When materials are purchased in a process costing system, a work in process account is debited with the cost of the materials, 2. Any difference in the equivalent units calculated under the weighted-average and the FIFO methods is due to the units in the ending work in process inventory. 13. The equivalent units in beginning work in process inventory plus the equivalent units for the work done during the period equals the units transferred out plus the equivalent units in ending work in process inventory. 4. There is no difference in the unit costs computed under the weighted average and FIFO methods of process costing if there are no beginning work in process inventories. _5. Under the weighted average method of process costing costs from the prior period are averaged with those of the current period in computing unit costs. 6. In a process costing production report the "Cost to be accounted for" will be the same whether the weighted average or the FIFO method is used. -7. Under the FIFO method of product costing, equivalent units of production consider units in the beginning inventory as if they were started and completed during the current period. 8. The production report of a company using the FIFO cost method likely would show goods transferred from a department in two parts--one part consisting of units from the beginning inventory completed and transferred, and the other part consisting of units that were both started and completed during the month. 9. In computing the cost per equivalent unit on the production report, costs in the beginning work in process inventory are kept separate from current period costs when the FIFO method is used 10. A major advantage of the FIFO method is that it allows managers to judge the performance of the current period independently of the performance of the prior period. 11. Equivalent units of production are the number of units that could have been manufactured from start to finish during an accounting period. 12. When the FIFO method is used to prepare a production report, costs to the next department are accounted for in two separate blocks. _13. Costs are accumulated by department in a process costing system. 14. Operation costing is a hybrid system that employs certain aspects of both job-order and process costing. _15. If a company uses average costing instead of FIFO they will still get the same unit costs