Question

Which of the following is true? Multiple Choice FIFO is always used for process costing. A...

Which of the following is true?

Multiple Choice

  • FIFO is always used for process costing.

  • A partially completed product whose direct materials are added at the beginning of the process would be 0% complete with respect to direct materials.

  • FIFO is never used in process costing.

  • A partially completed product whose direct materials are added at the beginning of the process would be 100% compete with respect to direct materials.

In activity-based costing, unit product costs computed for external financial reports do NOT include:

Multiple Choice

  • direct materials.

  • direct labor.

  • selling costs.

  • Manufacturing overhead

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Answer #1

Part 1) Option----C

A partially completed product whose direct materials are added at the beginning of the process would be 100% compete with respect to direct materials. Since units of production are fully completed with respect to direct material.

Part 2) Option C-------- Selling costs

In an activity based costing, unit product costs computed for external financial reports includes direct material, direct labor and manufacturing overhead. Selling costs are not included since they are period costs.

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