Which of the following statement(s) concerning conversion costs is correct?A) Estimating the degree of completion of direct materials in a partially completed unit is usually easierto calculate than estimating the degree of completion for conversion costs.B) The calculation of equivalent units is relatively easy for the textile industry.C) Estimates are usually not considered acceptable.D) Both B and C are correct.

Conversion costs in process costing include:Question 20Answera.Direct materials and direct laborb.Overhead and indirect materialsc.Direct materials and overheadd.Direct labor and overhead

Which one of the following statements are incorrect? / Watter een van die volgende stellings is verkeerd? A. Net realisable value is the estimated cost of completion and the estimated costs necessary to make the sale / Netto realiseerbare waarde is die beraamde koste van voltooiing en die beraamde kostes nodig om te verkope te maa B. All of the options / Al die opsies C. Costs that should be included in the cost price of inventory includes the purchase costs, conversion costs and transport costs / Kostes wat ingesluit moet word in die kosprys van voorraad, sluit aankoopskoste, omskakelingskoste en vervoerkostes in D. None of the options / Nie een van die opsies nie E. Inventory should be measured at the highest of cost or net realisable value / Voorraad moet gemeet word teen die hoogste van kosprys en netto realiseerbare waard

Collins Chemicals produces a compound through two processes. For its first process for a particular period, Collins had an opening WIP inventory of 100 units halfway through the process; 2300 units completed in the period; and a closing WIP inventory of 400 units three-quarters of the way through the process. Materials are added at the beginning of the process and conversion costs are incurred uniformly. Which statement is correct if the firm used weighted average costing?Group of answer choicesEquivalent units of direct material and conversion costs are both 2,600 for the period.Equivalent units of conversion costs are 2,700, and equivalent units of direct materials are 2,600.Equivalent units of direct material and conversion costs are both 2,700 for the period.Equivalent units of direct materials are 2,700, and equivalent units of conversion costs are 2,600.None of above.

B) Using the traditional costing and the rate computed in (A), determine:a. the total cost to produce one unit of each product line, andb. the profitability per unit of each product line.Solution:Aspire SteamerDirect materials $445.00 $534.00Direct labour $130.00 $163.00Overhead $190.94 x (25,500/5,100); (21,300/10,650) $954.70 $381.88Total cost per unit $1,529.70 $1,078.88Selling price $1,418.00 $1,586.00Less: costs 1,529.70 1,078.88Profit (loss) per unit -$111.70 $507.12

Which statement correctly describes a direct cost?