COST ACCOUNTING
PROCESS COSTING
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
There are no units in process at the beginning of the period, 1, 500 units in process at the end of the period that are 40% complete, and 15, 000 units transferred out during the period. Based on this information, there were 14, 400 equivalent units of production during the period.
|
|
True
|
|
|
False
|
Explanation:
Detailed explanation-1: -15, 000 units in a process that are 70% complete are referred to as: 10, 500 equivalent units of production.
Detailed explanation-2: -If the units in the beginning Work-in-Process Inventory are greater than the units in the ending Work-in-Process Inventory, then the units transferred out are: more than the units started during the period.
Detailed explanation-3: -Equivalent units of production refer to the number of units that could have been started and completed given the costs incurred during the period.
Detailed explanation-4: -Answer and Explanation: (e) Use of standard costs applies to process costing but not to job costing.
There is 1 question to complete.