When Using the First-In,first-Out Method of Process Costing,equivalent Units for Work

question 83

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.

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Definitions:

Net Income

The net income of a business once all deductions, including expenses, taxes, and other costs, are made from its total earnings.

Selling Price

The price at which goods or services are offered to consumers.

Fixed Costs

Expenses that do not change with the level of production or business activity, such as rent or salaries.

Variable Expenses

Expenses that vary in direct proportion to changes in an activity or production level, similar to variable costs.