Question

5. Equivalent production expresses all activity of the period in terms of

	a.	work in process
	b.	materials, labor and overhead
	c.	fully completed units
	d.	partially completed units

6. Two methods used to determine equivalent units of production in process costing are

	a.	weighted average and FIFO
	b.	FIFO and LIFO
	c.	weighted average and LIFO
	d.	weighted average and exact costing

7. Beginning inventory for the month contained 2,000 units that were 70% complete with respect to materials. During the month, 60,000 units were completed and transferred out. Ending inventory contained 3,000 units, 20% complete with respect to materials. The weighted average equivalent units of production for materials for the month would be

	a.	62,400
	b.	63,000
	c.	60,600
	d.	60,000

8. Estimating the degree of completion of ending work in process requires:

	a.	judgement and ethical behavior
	b.	The degree of completion of beginning work in process
	c.	adjusting the degree of completion of completed units
	d.	use of the weighted average method

Answer 1

5 Equivalent production expresses all activity of the period in terms of

Answer: C) fully completed units

__________________________________________________________

6 Two methods used to determine equivalent units of production in process costing are

Answer: A) weighted average and FIFO

__________________________________________________________

7

Answer: equivalent units of production for materials =c)60,600 units

Working notes for the above answer is as under

completed and transferred out	60000
Add; Ending inventory
(3000x20%)	600
equivalent units of production for materials	60600

__________________________________________________________

8 Estimating the degree of completion of ending work in process requires:

a. judgments and ethical behavior