42.If 8,000 units were in beginning inventory, 26,000 units were started, and 6,000 units were in the ending inventory, how many units were transferred out?
A. 40,000 units.
B. 26,000 units.
C. 28,000 units.
D. 24,000 units.
43.Equivalent units of production are:
A. A measure representing the percentage of a unit's cost that has been completed.
B. Not computed separately for each input added during production.
C. Not assigned to beginning work-in-process or ending work-in-process.
D. The total units completed during the period.
44.Equivalent units are usually computed for:
A. Only direct materials.
B. Only direct labor.
C. Only factory overhead.
D. Direct materials, direct labor, and factory overhead costs.
45.In most process costing systems, per-unit costs are determined by:
A. Dividing the number of units completed during the period by the total manufacturing costs incurred during the period.
B. Dividing the total manufacturing costs incurred during the period by the number of units worked on during the period.
C. Dividing the total manufacturing costs incurred during the period by the equivalent number of units completed during the period.
D. Unit costs cannot be determined in a process costing system.
46.In a process costing system, costs flow from one Work in Process Inventory account to the next in the same sequence as:
A. Units flow through production.
B. In a LIFO periodic inventory system.
C. Shipped to customers.
D. In a job order cost system.
47.In a process costing system, the number of units started and completed for a period is equal to:
A. Units transferred out less units in beginning work in process.
B. Units transferred out less units in ending work in process.
C. Units transferred out plus units in beginning work in process.
D. Units transferred out plus units in ending work in process.
48.The number of equivalent units of production:
A. Is equal to the number of units completed by a department.
B. May not be greater than the number of units completed by a department.
C. Is used to complete the overhead application rate.
D. May be less than, equal to, or greater than the number of physical units completed during the period.
49.Equivalent units of production represent units of:
A. Finished goods inventory.
B. Units of work-in-process inventory.
C. Work performed during the period.
D. Sales generated during the period.
50.Companies that compute equivalent units of production do so to:
A. Comply with income tax regulations.
B. Compute total manufacturing costs for the period.
C. Determine a manufacturing overhead application rate.
D. Determine departmental per-unit costs.
51.The computation of equivalent units is generally
not
necessary when:
A. Beginning work-in-process inventories are significantly larger than ending work-in-process inventories.
B. Beginning and ending work in process inventories differ only slightly.
C. The number of units in ending work-in-process exceeds the number of units completed and transferred to finished goods during the period.
D. Per-unit costs become distorted as a result of not computing equivalent units of production.