Question

In Step 4, the EUP from Step 2 and the cost per EUP from Step 3 are used to assign costs to the:___.

a. units in beginning inventory.
b. units completed and transferred to finished goods.
c. units in ending work in process inventory.
d. units sold.
Indirect labor includes:____.
a. labor of employees working directly on the product.
b. labor of the maintenance employees.
c. labor of the clerical staff.

Answer 1

b. units completed and transferred to finished goods.

c. units in ending work in process inventory.

b. labor of the maintenance employees.

c. labor of the clerical staff.

Step-by-step explanation:

EUP stands for the "equivalent units of production". It is the largest number of the units a factory can produce during the period for a given cost if all the efforts were used for one type of unit only.

The assigned cost relates to the unites that is completed as well as transferred to the finished goods. It also refers to the units in the ending work in the process inventory.

Indirect labor cost is the cost that is associated with the cost of the labors which is not directly associated to the production of goods. It includes the cost of the labor for the clerical staff and also for the maintenance employees.