Using Conversion Cost Per Equivalent Unit Is Appropriate for Many

question 92

Multiple Choice

Using conversion cost per equivalent unit is appropriate for many businesses that use process costing because:

• A)Direct materials and direct labor are usually entered into the production process at the same rate.
• B)All manufacturing costs are entered into the production process in the same period.
• C)Equivalent cost per unit is not sufficient measurement of production activity.
• D)The weighted average method of calculating equivalent units requires it.
• E)Direct labor and factory overhead enter the production process at the same rate.