12.

Standard costing is compatible with both FIFO and weighted average methods of costing

ANS: F DIF: Moderate OBJ: 6-5

13. A hybrid costing system would be appropriate for a company that manufactures cake flour.

ANS: F DIF: Easy OBJ: 6-6

14. A hybrid costing system would be appropriate for a company that manufactures several varieties of

jam.

ANS: F DIF: Moderate OBJ: 6-6

15. Using FIFO costing, equivalent units of production (EUP) can be determined by subtracting EUP’s in

Beginning work in process from weighted average EUP.

ANS: T DIF: Moderate OBJ: 6-7

16. Weighted average equivalent units of production (EUP) can be determined by adding EUP’s in
ending

work in process to units transferred out.

ANS: T DIF: Moderate OBJ: 6-7

17. Continuous production losses are assumed to occur uniformly throughout the process.

ANS: T DIF: Easy OBJ: 6-8

18. Discrete production losses are assumed to occur throughout the process.

ANS: F DIF: Easy OBJ: 6-8

19. Discrete production losses are assumed to occur at the end of a process.

ANS: T DIF: Easy OBJ: 6-8

20. Continuous production losses are assumed to occur at the end of a process

ANS: F DIF: Easy OBJ: 6-8

21. Abnormal continuous losses are absorbed by all units in ending inventory and transferred out on a

EUP basis.

ANS: F DIF: Moderate OBJ: 6-8

22. Normal continuous losses are absorbed by all units in ending inventory and transferred out on a EUP

basis.

ANS: T DIF: Moderate OBJ: 6-8