11) Companies that use automated production processes often condense the three manufacturing costs into two categories–Direct materials and Conversion costs.
12) Companies that use automated production processes often condense the three manufacturing costs into two categories–Direct labor and Conversion costs.
13) Direct materials are usually added evenly throughout the production process.
14) The number of equivalent units is usually the same for direct materials and conversion costs.
15) If all direct materials are added at the beginning of the production process, and the units have made it 50% of the way through the production process, then the percentage completion for direct materials is 100%.
16) If all direct materials are added at the beginning of the production process, and the units have made it 50% of the way through the production process, then the percentage completion for direct materials is 50%.
17) If all direct materials are added at the beginning of the production process, and the units have made it 50% of the way through the production process, then the percentage completion for direct materials is 0%.
18) If all direct materials are added at the end of the production process, and the units have made it 50% of the way through the production process, then the percentage completion for direct materials is 100%.
19) If all direct materials are added at the end of the production process, and the units have made it 50% of the way through the production process, then the percentage completion for direct materials is 50%.
20) If all direct materials are added at the end of the production process, and the units have made it 50% of the way through the production process, then the percentage completion for direct materials is 0%.