.

The FIFO method separates beginning inventory and current production to compute cost per unit of
production.

ANS: T

8. The numerator in the formula for equivalent units includes all beginning inventory costs when using the
weighted average costing assumption.

ANS: T ,6-3

9. The numerator in the formula for equivalent units includes all beginning inventory costs when using the
FIFO costing assumption.

ANS: F ,6-4

10. The weighted average costing method assumes that units in beginning inventory are the first units
transferred.

ANS: F

11. The FIFO costing method assumes that units in beginning inventory are the first units transferred.

ANS: T

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

ANS: F

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

ANS: F OBJ: 6-6