Direct Materials Costs and Conversion Costs for the Current Period

question 38

Multiple Choice

Direct materials costs and conversion costs for the current period on a process cost report are divided by their respective units of equivalent production to arrive at the

• A) ending inventory unit cost.
• B) transferred-in cost per unit.
• C) beginning inventory cost per unit.
• D) cost per equivalent unit.

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Definitions:

Cash Budget

A detailed plan showing how cash resources will be acquired and used over a specific time period.

Master Budget

A number of separate but interdependent budgets that formally lay out the company’s sales, production, and financial goals and that culminates in a cash budget, budgeted income statement, and budgeted balance sheet.

Master Budget

A comprehensive financial plan that includes all of the smaller budgets within a company, projecting all of its financial activities for a fiscal year.

Interdependent Budgets

Budgets that are connected and rely on figures from each other, illustrating the financial and operational relationships within an organization.