Costing - Study Mode
[#731] If cost incurred for work in process inventory is $350000 and total equivalent units completed till date are 3500, then weighted average cost will be
Correct Answer
(B) $100
Explanation
Solution: Weighted average cost = Cost incurred for work in process inventory ÷ Total equivalent units completed = $350000 ÷ 3500 = $100
[#732] Third step in process costing system is to
Correct Answer
(C) summarize total costs
Explanation
Solution: Third step in process costing system is to summarize total costs. Process costing is a method of assigning production costs to units of output.
[#733] Hybrid costing system, which is applied to batches of similar products, but are not identical is classified as
Correct Answer
(D) operation costing system
Explanation
Solution: Hybrid costing system, which is applied to batches of similar products, but are not identical is classified as operation costing system. Operation costing, also known as service costing, is a costing method that combines process costing and job costing.
[#734] Costing system, which classify cost into cost categories in a way when an expense is incurred in process is called
Correct Answer
(C) process costing system
Explanation
Solution: Costing system, which classify cost into cost categories in a way when an expense is incurred in process is called process costing system. Process costing is a type of operation costing which is used to ascertain the cost of a product at each process or stage of manufacture.
[#735] Total cost related to work in process inventory is divided by total units of work done is used to calculate
Correct Answer
(C) weighted average cost
Explanation
Solution: Total cost related to work in process inventory is divided by total units of work done is used to calculate weighted average cost.