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Unformatted text preview: Chapter 04 - Supplement: Process Costing Using the FIFO Method Chapter 04 Supplement: Process Costing Using the FIFO Method True / False Questions 1. When comparing the two process costing methods for the same company, equivalent units computed under the FIFO method will always be less than or equal to equivalent units computed under the weighted-average method. True False 2. The cost per equivalent unit for conversion costs will always be the same under both the FIFO and the weighted-average methods if there is no beginning work in process inventory. True False 3. Under the FIFO process costing method, the equivalent units of production relate only to work done during the current period. True False 4. The cost per equivalent unit under the FIFO method of process costing is equal to the cost of beginning work in process inventory plus the costs added during the period, all divided by the equivalent units of production for the period. True False 5. In the cost reconciliation report, the costs accounted for equals the cost of ending work in process inventory plus the costs added during the period. True False 4s-1 Chapter 04 - Supplement: Process Costing Using the FIFO Method Multiple Choice Questions 6. All production costs have been steadily rising in the Donner Company for several periods. The company maintains large work in process inventories. Donner Company's cost per equivalent unit computed using the FIFO method would be: A. the same as that computed under the weighted-average method. B. higher than that computed under the weighted-average method. C. lower than that computed under the weighted-average method. D. could be lower than, the same as, or higher than that computed under the weighted-average method. 7. On April 1, Histron Corporation had 10,000 units of work in process in Department A that were 100% complete with respect to material costs and 20% complete with respect to conversion costs. During April, 80,000 units were started in Department A and 85,000 units were completed and transferred to Department B. The work in process at the end of April was 100% complete with respect to materials costs and 40% complete with respect to conversion costs. By what amount would the equivalent units for conversion costs for April differ if the FIFO method were used instead of the weighted-average method? A. 10,000 decrease B. 8,000 decrease C. 4,000 decrease D. 2,000 decrease 8. Creer Company uses the FIFO method in its process costing system. Department A had 20,000 units in process at the beginning of January that were 40% complete with respect to conversion costs. All materials are added at the beginning of the process in Department A....
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This note was uploaded on 05/03/2011 for the course ACC 1410 taught by Professor Bauser during the Spring '11 term at Marion Technical College.
- Spring '11
- Managerial Accounting