Group # Group members: 2. 3, 4. In process costing, costs are accumulated in pro

Question

Group # Group members: 2. 3, 4. In process costing, costs are accumulated in processing departments, rather than by job. True False Under the FIFO method, the cost of materials in the beginning work in process inventory is used in the computation of the cost per equivalent unit for materials. 2. True False A process costing system is suited for production of a large quantity of a homogeneous product. 3. True False 4. The variable expense per unit is $8 and the selling price per unit is $48. Then the contribution margin ratio is 70%. True False total sales in dollars. True False 5. The margin of safety percentage is equal to the margin of safety in dollars divided by

Explanation / Answer

Answer = 1 In process costing , cost are accumulated till all process are finished. So, Answer = True Answer = 2 Under FIFO method cost of beginning inventory will be taken for cost So, Answer = True Answer = 3) process costing is suited for production of a large quantity of homogeneous product So, Answer = True Answer = 4 Contribution = $ 48 - $ 8 = $ 40 Contribution margin = $40 / $ 48 = 0.8333 = 83.33% So, Answer = False Answer = 5 Margin of Safety = Actual Sales - Break even / Actual Sales Margin of Safety in % = Margin of safey in Dolalrs / Actual Sales. So, Answer = True

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