In Computing the Current Period's Manufacturing Cost Per Equivalent Unit

question 38

Multiple Choice

In computing the current period's manufacturing cost per equivalent unit, the FIFO method of process costing considers: (CPA adapted)

• A) only current period costs.
• B) current period costs plus cost of beginning work-in-process inventory.
• C) current period costs less cost of beginning work-in-process inventory.
• D) current period costs plus the cost of ending work-in-process inventory.

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Definitions:

First Quartile

The value below which 25% of the data falls, marking the lower quarter of a data set.

Quartile

A type of quantile that divides a rank-ordered dataset into four equal parts.

Standard Normal Variable

A random variable that has a mean of 0 and a standard deviation of 1, following the standard normal distribution.

Standard Normal Curve

The graphical representation of a normal distribution that has a mean of zero and a standard deviation of one, used in probability theory and statistics.