learning objective 18 6 1 production cost reports prepared using the first in first 4306509

learning objective 18 6 1 production cost reports prepared using the first in first 4306509

Learning Objective 18-6

1) Production cost reports prepared using the first-in-first-out (FIFO) method, determines the cost of equivalent units of production by accounting for beginning inventory costs separately from current period costs.

2) Production cost reports prepared using first-in-first-out (FIFO) method assumes that the first units started in the production process are the last units completed and sold.

3) Production cost reports prepared using first-in-first-out (FIFO) method determines the average cost of equivalent units of production by combining beginning inventory costs with current period costs.

4) Production cost reports prepared using first-in-first-out (FIFO) method assumes that the first units started in the production process are the first units completed and sold.

5) Under the first-in-first-out (FIFO) method, the current-period equivalent units of production for the units in the beginning inventory is always 100%.

6) If a business operates in an industry that experiences significant cost changes, it would be to its benefit to use the first-in-first-out (FIFO) method.

7) Significant changes in costs are not exposed in a first-in-first-out (FIFO) method.

8) Under the first-in-first-out (FIFO) method, prior period costs are not merged with current period costs.

9) Under the first-in-first-out (FIFO) method, the cost of equivalent units of production is calculated by ________.

A) summing up only the transferred in costs of each department

B) combining beginning inventory costs with current period costs

C) considering only the transferred out costs of each department

D) accounting for beginning inventory costs separately from current period costs

10) Which of the following is used to calculate the number of units to account for under the first-in-first-out (FIFO) method of inventory valuation of process costing?

A) To account for = Beginning balance + Started and completed + In process

B) To account for = Beginning balance + Amount transferred in

C) To account for = Beginning balance + In process

D) To account for = Beginning balance + Started and completed

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