When Using the First-In, First-Out Method of Process Costing, Equivalent

question 67

Multiple Choice

When using the first-in, first-out method of process costing, equivalent units for work done during this period is equal to the number of units:

• A)In work-in-process at the beginning of the period times the percent of work necessary to complete the items, plus the number of units started and completed during the period, plus the number of units remaining in work-in-process at the end of the period times the percent of work done during the period.
• B)In work-in-process at the beginning of the period, plus the number of units started during the period, plus the number of units remaining in work-in-process at the end of the period times the percent of work necessary to complete the items.
• C)Started into process during the period, plus the number of units in work-in-process at the beginning of the period.
• D)Transferred out during the period, plus the number of units remaining in work-in-process at the end of the period times the percent of work necessary to complete the items.
• E)None of the above.

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Definitions:

Financial Analysis

The process of examining financial statements to make decisions about investments, credit, and the financial health of an entity.

Common-Size Percentages

Financial analysis tool that expresses each line item on a financial statement as a percentage of a base amount, facilitating comparison across companies or periods.

Income Statement

A report detailing a business's income and expenditures within a certain timeframe, culminating in either a net gain or a deficit.

Ratio Analysis

A quantitative analysis of information contained in a company's financial statements, used to evaluate financial health, performance, and trends.