1) Costs of ending WIP inventory are not included in the cost per equivalent unit computation.
2) The number of equivalent units is computed after computing the cost per equivalent unit.
3) Wong completed 25,000 units and had another 8,000 units 35% complete. The total equivalent units for the period are 27,800.
4) Total direct materials = $90,000, and there is no beginning WIP inventory. Units completed are 18,000 with no ending work in process inventory. The cost per unit is $5.00.
5) The production equivalent unit report summarizes all costs.
6) If a company has no ending work in process inventory, it must use the 5-step process costing procedure to determine the cost of making one unit.
7) If a company has ending work in process inventory, it must use the 5-step process costing procedure to determine the cost of making one unit.
8) The existence of ending work in process inventory necessitates the use of the 5-step process costing procedure.
9) The existence of ending work in process inventory necessitates how much of the total manufacturing cost should be assigned to units still in ending WIP inventory, and how much of the cost should be assigned to units completed during the period.
10) The first step of the 5-step process costing procedure is to compute output in terms of equivalent units.