Deck 3: Process Costing

Question 1

Process costing is used to calculate the cost of homogenous goods or services

Answer 1

True

Question 2

The production report contains information about the number of physical units and equivalent units, but not their costs

Answer 2

False

Question 3

The total cost of Work in Process incurred in one department during the period must be allocated between costs transferred to the next department and costs transferred to Finished Goods

Answer 3

False

Question 4

Which of the following is a characteristic of process costing?

A) Products are unique.
B) Costs are traced to products rather than to production processes.
C) It is employed by companies that use standardized processes.
D) It can only be used for manufacturing firms and not used for service firms.

Question 5

Which of the following is not a characteristic of process costing?

A) Products are homogenous.
B) Costs are traced to production processes rather than products.
C) Service firms cannot use process costing.
D) Processes are standardizeD.
Process costing is used when products or processes are standardized and when costs are traced to the overall process, rather than an individual project. Although process costing is most often identified with manufacturing companies, service firms can use process costing as well.

Question 6

Equivalent units for materials may differ from the equivalent units for conversion costs

Question 7

Under the weighted-average method, the only partially completed units that need to be addressed are the units in beginning inventory

Question 8

The process costing production report is used to determine how much manufacturing cost to transfer out of Finished Goods Inventory and into Cost of Goods Sold

Question 9

A separate Work in Process Inventory account is used in process costing for each major production process

Question 10

Which of the following statements is not correct with respect to Fetzer Vineyards's sustainability efforts?

A) Barney Fetzer began producing wine in 1968, and he incorporated triple bottom line sustainability accounting in 2014.
B) Fetzer accounts for its profit (one component of the triple bottom line) based on growth and dollars.
C) Fetzer accounts for its plant impact (one component of the triple bottom line) by protecting its environment.
D) Fetzer accounts for its people impact (one component of the triple bottom line) by contributing to society.

Question 11

Process costing often combines direct materials and direct labor into a single category called conversion costs

Question 12

An equivalent unit is a measure used to convert costs incurred in the previous period to costs incurred in the current period

Question 13

A major difference between job order costing and process costing is the treatment of nonmanufacturing costs

Question 14

Conversion costs consist of:

A) all costs of production.
B) raw materials and direct labor.
C) direct labor and manufacturing overhead.
D) raw materials and manufacturing overheaD.
Direct labor and manufacturing overhead costs can be lumped together in a single category called conversion cost.

Question 15

Which of the following companies would most likely use process costing?

A) A soft drink company
B) A law firm
C) A custom garden equipment manufacturer
D) A home remodeling company

Question 16

Cost per equivalent unit is calculated separately for direct materials and for conversion costs

Question 17

Under process costing when the product is through the last production process, the journal entry for total manufacturing cost includes a debit to Work in Process Inventory and a credit to Finished Goods Inventory

Question 18

The key difference between a process costing production report prepared using one of the two acceptable methods is how they deal with any units and costs that are in ending Work in Process Inventory

Question 19

The process costing production report can be prepared using either the weighted-average method or the last-in, first-out (LIFO) method

Question 20

Under the FIFO method, the units completed during the period must be allocated between beginning units in process and units started and completed

Question 21

A firm using process costing needs to reconcile the number of physical units in order to:

A) account for units that have different percentages of completion.
B) determine the number of units that were started during the period.
C) reconcile beginning Work in Process Inventory with ending Work in Process Inventory.
D) separate physical units from the equivalent units.

Question 22

Which of the following relationships is correct?

A) Beginning units in inventory + units started = units completed + ending units in inventory
B) Units started = beginning units in inventory + units completed + ending units in inventory
C) Units started - beginning units in inventory = units completed + ending units in inventory
D) Ending units in inventory + beginning units in inventory = units started - units completed

Question 23

Which of the following statements is correct with respect to the differences between using the weighted-average method or the FIFO method of preparing a process production report?

A) Use of FIFO is acceptable for GAAP, while use of weighted-average method is not.
B) FIFO is simpler to use than the weighted-average method.
C) Use of FIFO or weighted-average results in large differences for companies that maintain minimal work-in-process inventory.
D) The weighted-average method is often simpler, less costly to prepare, and provides useful information for decision-making.

Question 24

Every unit that passes through the production process must have been counted in which category of physical units at some point?

A) Beginning units in inventory
B) Units started
C) Ending units in inventory
D) Units completed

Question 25

To reconcile the number of physical units using the weighted average method of process costing, one must determine whether the units were:

A) in process at the beginning of the period or were completed at the beginning of the period.
B) in process at the beginning of the current period or in process at the beginning of the previous period.
C) in process at the beginning of the period or were sold at the beginning of the period.
D) in process at the beginning of the period or were started during the perioD.
One must add the number of units that were on hand at the beginning of the period to the units that were started during the current perioD.

Question 26

To reconcile the number of physical units using the weighted average method of process costing, one must determine whether the units were:

A) completed or still in process at the end of the period.
B) sold or still in inventory at the end of the period.
C) in the next production process or sold at the end of the period.
D) using direct materials or conversion costs at the end of the perioD.
One must determine whether the units were completed during the period or are still being worked on at the end of the perioD.

Question 27

Which of the following accounts will be treated differently by a process costing system as compared to a job order costing system?

A) Raw Materials Inventory
B) Work in Process Inventory
C) Finished Goods Inventory
D) Cost of Goods Sold

Question 28

Physical units multiplied by the percentage of completion yields:

A) units completed and transferred out.
B) beginning units in process.
C) equivalent units.
D) ending units in process.

Question 29

Brody Corp. uses a process costing system. Beginning inventory for January consisted of 1,300 units that were 40% completed. 13,000 units were started during January. On January 31, the inventory consisted of 650 units that were 70% completed. How many units were completed during the period?

A) 12,350
B) 13,650
C) 14,300
D) 14,950

Question 30

An equivalent unit is calculated by:

A) dividing the number of physical units by the percentage of completion.
B) multiplying the number of physical units by the percentage of completion.
C) dividing the number of physical units into direct materials and conversion costs.
D) subtracting the number of physical units in ending Work in Process Inventory from the total number of physical units.

Question 31

Braden Corp. uses a process costing system. Beginning inventory for January consisted of 1,300 units that were 60% completed. 13,000 units were started into the process during January. During January, 12,000 units were completed. How many units were in ending inventory on January 31?

A) 1,950
B) 1,300
C) 650
D) 2,300

Question 32

Which of the following statements is true?

A) A process costing system will have a single Work in Process Inventory account.
B) A process costing system will have a separate Work in Process Inventory account for each of the major processes.
C) A job costing system will have a separate Work in Process Inventory account for each of the major processes.
D) A process costing system will have a separate Raw Materials Inventory account for each of the major processes.

Question 33

Under process costing, which manufacturing costs are assigned to the product as it moves from one manufacturing process to the next?

A) Direct materials, direct labor, and conversion costs
B) Direct materials, indirect materials, and manufacturing overhead
C) Direct materials, direct labor, and manufacturing overhead
D) Direct materials, direct labor, and indirect labor

Question 34

How could a firm using the weighted average method of process costing calculate how many units were started during a period?

A) Add units completed and beginning units in inventory, then subtract ending units in inventory.
B) Subtract beginning units in inventory from units completed, then add ending units in inventory.
C) Add beginning units in inventory, units completed, and ending units in inventory.
D) Subtract ending units in inventory from units completed, then add beginning units in inventory.

Question 35

Bildy Corp. uses a process costing system. During January, 14,000 units were started, and 18,000 units were completed. On January 31, the inventory consisted of 500 units that were 70% completed. How many units were in beginning inventory on January 1?

A) 0
B) 500
C) 3,500
D) 4,500

Question 36

Which of the following is not a category used to reconcile the number of physical units using the weighted average method of process costing?

A) Units started
B) Ending units in inventory
C) Cost of goods sold
D) Units completed

Question 37

Bosco Corp. uses a process costing system. Beginning inventory for January consisted of 1,500 units that were 50% completed. During January, 10,000 units were completed. On January 31, the inventory consisted of 750 units that were 75% completed. How many units were started during January?

A) 8,500
B) 9,250
C) 10,000
D) 10,750

Question 38

Which of the following statements is incorrect regarding the production costing report?

A) A separate production report is prepared for each major production process on an annual basis.
B) The production report provides information about the number of units and manufacturing costs that flow through a production process during an accounting period.
C) The production report is used to determine how much manufacturing cost to transfer out of Work in Process Inventory and into the next processing department or finished goods if it is the last production process.
D) The production report is used to value any units that are in process at the end of the accounting perioD.
The production report provides information about the number of units and manufacturing costs that flow through a production process during an accounting perioD.
It is used to determine how much manufacturing cost to transfer out of Work in Process Inventory and into the next processing department (or Finished Goods Inventory if it is the last production process) and to value any units that are in process at the end of the accounting perioD.
A separate production report is prepared for each major production process on either a monthly or quarterly basis.

Question 39

Equivalent units are tracked separately for which two categories of costs?

A) Direct labor and manufacturing overhead.
B) Direct materials and conversion cost.
C) Direct materials and indirect materials.
D) Finished goods and cost of goods solD.
Direct materials and conversion costs have different percentages of completion so equivalent units are calculated separately for each category.

Question 40

How could a firm using the weighted average method of process costing calculate how many units were worked on during a period?

A) Add beginning units in inventory and units completed
B) Add beginning units in inventory and ending units in inventory
C) Add units completed and ending units in inventory
D) Add units started and units completed

Question 41

For a process costing firm, one could calculate the cost of beginning inventory in which of the following ways?

A) (Cost per equivalent unit × equivalent units) - current costs
B) Current costs - (equivalent units × cost per equivalent unit)
C) (Current costs × cost per equivalent unit) - equivalent units
D) Equivalent units × (current costs - cost per equivalent unit)

Question 42

Crador Corp. uses a process costing system in which direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Beginning inventory for January consisted of 1,300 units. 13,000 units were started into the process during January. On January 31, the inventory consisted of 650 units. Equivalent units for conversion costs were 14,235. What percentage complete was the ending inventory with respect to conversion costs on January 31?

A) 70%
B) 80%
C) 90%
D) 100%

Question 43

For a firm that uses the weighted average method of process costing, which of the following must be true?

A) Physical units must be greater than or equal to equivalent units.
B) Equivalent units must be greater than or equal to physical units.
C) Physical units must be equal to equivalent units.
D) Physical units can be greater than or less than equivalent units.

Question 44

Computing equivalent units is especially important for:

A) Goods that take a long time to produce, such as airplanes.
B) Goods that are started and completed during the same period.
C) Goods that take a relatively short time to produce, such as plastic bottles.
D) Goods with sustainability implications in their production processes.

Question 45

Cost per equivalent unit is kept separate for direct materials and conversion costs because:

A) the physical units are different for the two categories.
B) the total manufacturing costs are different for the two categories.
C) the equivalent units are different for the two categories.
D) the ending inventories are different for the two categories.

Question 46

To calculate cost per equivalent unit in process costing, divide total manufacturing costs by the total number of equivalent units. Under the weighted average method, what costs are reflected in total manufacturing costs?

A) Only current period costs
B) Only prior period costs
C) Both current and prior period costs
D) Both current and future period costs

Question 47

Kenney Co. uses process costing to account for the production of canned energy drinks. Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Equivalent units have been calculated to be 19,200 units for materials and 16,000 units for conversion costs. Beginning inventory consisted of $11,200 in materials and $6,400 in conversion costs. April costs were $57,600 for materials and $64,000 for conversion costs. Ending inventory still in process was 6,400 units (100% complete for materials, 50% for conversion). The cost per equivalent unit for materials using the weighted average method would be closest to:

A) $0.9167
B) $3.0000
C) $3.5833
D) $7.2500

Question 48

Kenney Co. uses process costing to account for the production of canned energy drinks. Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Equivalent units have been calculated to be 19,200 units for materials and 16,000 units for conversion costs. Beginning inventory consisted of $11,200 in materials and $6,400 in conversion costs. April costs were $57,600 for materials and $64,000 for conversion costs. Ending inventory still in process was 6,400 units (100% complete for materials, 50% for conversion). The total cost per unit using the weighted average method would be closest to:

A) $7.9833
B) $6.9091
C) $7.0000
D) $7.2500

Question 49

Which of the following is not used in the calculation of cost per equivalent unit?

A) Current manufacturing costs
B) Current nonmanufacturing costs
C) Equivalent units
D) Beginning inventory costs

Question 50

Kenney Co. uses process costing to account for the production of canned energy drinks. Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Equivalent units have been calculated to be 19,200 units for materials and 16,000 units for conversion costs. Beginning inventory consisted of $11,200 in materials and $6,400 in conversion costs. April costs were $57,600 for materials and $64,000 for conversion costs. Ending inventory still in process was 6,400 units (100% complete for materials, 50% for conversion). The cost per equivalent unit for conversion costs using the weighted average method would be

A) $4.00
B) $4.40
C) $1.10
D) $8.70

Question 51

Frost, Inc. is a service firm that uses process costing. The firm worked on a total of 1,600 cases this month, 800 of which were completed during the period. The remaining cases were 40% complete. The firm incurred $180,000 in direct labor and manufacturing overhead costs during the period, and had $4,800 in direct labor and manufacturing costs in beginning inventory. Using the weighted average method, what was the cost per equivalent unit?

A) $115.50
B) $141.43
C) $145.20
D) $165.00

Question 52

Under the weighted average method of process costing, the cost per equivalent unit is calculated for which of the following categories?

A) Units sold and units in ending Finished Goods Inventory
B) Direct materials and conversion costs
C) Manufacturing costs and nonmanufacturing costs
D) Completed units and ending units in process

Question 53

Frost, Inc. is a service firm that uses process costing. The firm worked on a total of 1,600 cases this month, 800 of which were completed during the period. The remaining cases were 40% complete. The firm incurred $180,000 in direct labor and manufacturing overhead costs during the period, and had $4,800 in direct labor and manufacturing costs in beginning inventory. Using the weighted average method, what was the total number of equivalent units?

A) 800
B) 1,120
C) 1,440
D) 1,600

Question 54

For a firm that uses process costing, calculating equivalent units makes it possible to fulfill which of the following requirements of GAAP?

A) Assigning an appropriate value to assets
B) Assigning an appropriate value to liabilities
C) Expensing period costs as they are incurred
D) Recognizing revenue when it is realized or realizable

Question 55

For a firm using the weighted average method of process costing, it would not be necessary to translate physical units into equivalent units if:

A) the FIFO method were used instead.
B) direct materials were all added at the beginning of the process.
C) direct labor and manufacturing overhead were combined into a single category called conversion costs.
D) all units worked on during the period were completed during the perioD.
Equivalent units = physical units × percentage of completion. If all units were 100% complete, equivalent units would equal physical units.

Question 56

Brody Corp. uses a process costing system in which direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Beginning inventory for January consisted of 1,300 units that were 40% completed. 13,000 units were started into the process during January. On January 31, the inventory consisted of 650 units that were 70% completed. What would be the equivalent units for direct materials cost using the weighted average method?

A) 13,000
B) 13,585
C) 14,105
D) 14,300

Question 57

Brody Corp. uses a process costing system in which direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Beginning inventory for January consisted of 1,300 units that were 40% completed. 13,000 units were started into the process during January. On January 31, the inventory consisted of 650 units that were 70% completed. What would be the equivalent units for conversion cost using the weighted average method?

A) 13,000
B) 13,585
C) 14,105
D) 14,300

Question 58

Gatlin Manufacturing adds direct materials at the beginning of the production process, while conversion costs are incurred uniformly throughout the process. At the end of the period, equivalent units for direct materials were 250 more than equivalent units for conversion costs. 1,000 units were started during the period, and 1,000 units were also completed. Ending Work in Process Inventory was 50% complete. How many physical units were in ending Work in Process Inventory?

A) 250
B) 500
C) 750
D) 1,000

Question 59

For units that are completed and transferred out in a firm that uses the weighted average method of process costing:

A) the number of units that came from beginning inventory is the same as the number of units that were started during the period.
B) the number of equivalent units for direct materials is the same as the number of equivalent units for conversion cost.
C) the number of equivalent units is less than the number of physical units.
D) the number of equivalent units is more than the number of physical units.

Question 60

Under the weighted average method of process costing, which of the following formulas is used to calculate the cost per equivalent unit?

A) (Ending Inventory + Current Costs)/Physical Units
B) (Beginning Inventory + Current Costs)/Physical Units
C) (Ending Inventory + Current Costs)/Equivalent Units
D) (Beginning Inventory + Current Costs)/Equivalent Units

Question 61

Rathburn, Inc. is a service firm that uses process costing. The firm worked on a total of 1,000 cases this month, 800 of which were completed during the period. The remaining cases were 40% complete. The firm incurred $180,000 in direct labor and manufacturing overhead costs during the period, and had $4,800 in direct labor and manufacturing costs in beginning inventory. Using the weighted average method, what was the total cost of cases still in process at the end of the period?

A) $16,800
B) $17,520
C) $168,000
D) $175,200

Question 62

Under the FIFO method, physical units must be broken down into:

A) units completed and ending units in process
B) units started and completed and ending units in process
C) beginning units in process and units started and completed
D) beginning units in process, units started and completed, and ending units in process

Question 63

Livingston Co. uses process costing to account for the production of elastic bands. Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Beginning inventory consisted of $14,000 in materials and $8,000 in conversion costs. April costs were $72,000 for materials and $80,000 for conversion costs. During April 8,000 units were completed. Ending in process inventory was 4,000 units (100% complete for materials, 50% for conversion). The equivalent cost per unit for materials using the weighted average method would be closest to:

A) $1.8333
B) $6.0000
C) $7.1667
D) $14.5000

Question 64

Livingston Co. uses process costing to account for the production of elastic bands. Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Beginning inventory consisted of $14,000 in materials and $8,000 in conversion costs. April costs were $72,000 for materials and $80,000 for conversion costs. During April 8,000 units were completed. Ending in process inventory was 4,000 units (100% complete for materials, 50% for conversion). The total cost per unit using the weighted average method would be:

A) $15.9667
B) $13.8382
C) $14.0000
D) $14.5000

Question 65

To reconcile the total cost of Work in Process Inventory, account for:

A) both beginning Work in Process Inventory and any costs that were added during the current period.
B) only beginning Work in Process Inventory.
C) only costs that were added during the period.
D) beginning Work in Process Inventory, any costs that were added during the current period, and completed costs.

Question 66

How is the ending balance in Work in Process Inventory calculated for a firm that uses the weighted average method of process costing?

A) Multiply the costs per equivalent unit by the number of equivalent units associated with ending Work in Process Inventory.
B) Subtract the cost of goods finished and the cost of goods sold from total manufacturing costs.
C) Add the costs of the jobs still in process at the end of the period.
D) Divide total manufacturing costs by total equivalent units.

Question 67

Stangol Co. uses process costing to account for the production of highlighter pens. Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Cost per equivalent unit has been calculated to be $8.80 for conversion costs and $7.1667 for materials. 12,000 units were worked on during the period. Ending inventory still in process was 4,000 units (100% complete for materials, 50% for conversion). The value of units completed and transferred out using the weighted average method would be closest to:

A) $127,733.60
B) $130,000.00
C) $152,000.00
D) $159,666.00

Question 68

The manufacturing cost that is transferred from one production process to another (for example, from production to packaging) is called the:

A) beginning Work in Process Inventory cost.
B) ending Work in Process Inventory cost.
C) transferred-in cost.
D) accumulated cost of goods.

Question 69

To determine how much cost should be transferred out of Work in Process Inventory:

A) multiply costs per equivalent unit by the number of equivalent units associated with units completed.
B) multiply costs per equivalent unit by the number of equivalent units associated with ending inventory.
C) subtract cost of beginning inventory from current period costs.
D) add cost of beginning inventory and current period costs.

Question 70

Stangol Co. uses process costing to account for the production of highlighter pens. Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Cost per equivalent unit has been calculated to be $8.80 for conversion costs and $7.1667 for materials. 12,000 units were worked on during the period. Ending inventory still in process was 4,000 units (100% complete for materials, 50% for conversion). The value of ending inventory using the weighted average method would be closest to:

A) $31,933.20
B) $46,266.80
C) $63,866.40
D) $130,000.00

Question 71

Togo Co. uses process costing to account for the production of picture frames. Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Equivalent units have been calculated to be 12,000 units for materials and 10,000 units for conversion costs. Beginning inventory consisted of $14,000 in materials and $8,000 in conversion costs. April costs were $72,000 for materials and $80,000 for conversion costs. Ending inventory still in process was 4,000 units (100% complete for materials, 50% for conversion). The value of ending inventory using the weighted average method would be closest to:

A) $31,933.60
B) $46,266.80
C) $63,866.80
D) $130,000.00

Question 72

TryFit Co. uses process costing to account for the production of energy food bars. Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Beginning inventory consisted of $7,000 in materials and $4,000 in conversion costs. April costs were $36,000 for materials and $40,000 for conversion costs. During April 8,000 units were completed. Ending in process inventory was 4,000 units (100% complete for materials, 50% for conversion). The value of units completed and transferred out using the weighted average method would be closest to:

A) $63,866.40
B) $65,000.00
C) $76,000.00
D) $79,833.00

Question 73

Under FIFO, to calculate the number of equivalent units, ask yourself: What did we do during the ________ period to get beginning inventory from x% to y% complete and what did we do during the _______ period to get ending inventory to z% complete?

A) current, current
B) current, prior
C) prior, current
D) prior, prior

Question 74

Rathburn, Inc. is a service firm that uses process costing. The firm worked on a total of 1,000 cases this month, 800 of which were completed during the period. The remaining cases were 40% complete. The firm incurred $180,000 in direct labor and manufacturing overhead costs during the period, and had $4,800 in direct labor and manufacturing costs in beginning inventory. Using the weighted average method, what was the total cost of cases completed during the period?

A) $16,800
B) $17,520
C) $168,000
D) $175,200

Question 75

Hager Co. uses process costing to account for the production of bottled energy drinks. Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Equivalent units have been calculated to be 12,000 units for materials and 10,000 units for conversion costs. Beginning inventory consisted of $7,000 in materials and $4,000 in conversion costs. April costs were $36,000 for materials and $40,000 for conversion costs. Ending inventory still in process was 4,000 units (100% complete for materials, 50% for conversion). The value of units completed and transferred out using the weighted average method would be closest to:

A) $63,866.40
B) $65,000.00
C) $76,000.00
D) $79,833.00

Question 76

Livingston Co. uses process costing to account for the production of elastic bands. Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Beginning inventory consisted of $14,000 in materials and $8,000 in conversion costs. April costs were $72,000 for materials and $80,000 for conversion costs. During April 8,000 units were completed. Ending in process inventory was 4,000 units (100% complete for materials, 50% for conversion). The cost per equivalent unit for conversion costs using the weighted average method would be:

A) $8.00
B) $8.80
C) $2.20
D) $17.40

Question 77

TryFit Co. uses process costing to account for the production of energy food bars. Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Beginning inventory consisted of $7,000 in materials and $4,000 in conversion costs. April costs were $36,000 for materials and $40,000 for conversion costs. During April 8,000 units were completed. Ending in process inventory was 4,000 units (100% complete for materials, 50% for conversion). The value of ending inventory using the weighted average method would be closest to:

A) $15,966.60
B) $23,133.20
C) $31,933.20
D) $65,000.00

Question 78

To determine how much cost should be assigned to ending Work in Process Inventory:

A) multiply costs per equivalent unit by the number of equivalent units associated with units completed.
B) multiply costs per equivalent unit by the number of equivalent units associated with ending Work in Process Inventory.
C) subtract cost of beginning inventory from current period costs.
D) add cost of beginning inventory and current period costs.

Question 79

Macadam Corp. uses the weighted average method of process costing. Its cost per equivalent unit for direct materials was $5.00 this period, and it had 25,000 equivalent units for direct materials. Beginning inventory costs were 25% of current costs. How much were current costs?

A) $25,000
B) $75,000
C) $100,000
D) $125,000

Question 80

Which of the following is not a step in preparing a production report?

A) Reconcile the number of physical units worked on during the period
B) Translate the physical units into equivalent units
C) Trace the cost of direct materials and direct labor to each unit
D) Calculate the cost per equivalent unit