CIA IIA-CIA-Part3-3P Passing Score

The capital accounts of the partners should be increased by the original cost of the contributed equipment.

The capital accounts should be increased using a weighted average based on the current percentage of ownership

No action is needed as the capital account of each partner was increased by the correct amount

The capital accounts of the partners should be increased by the fair market value of their contribution

Total manufacturing costs are determined at the end of each period.

Costs are summarized in a production cost repot for each department

Three manufacturing cost elements are tracked direct materials direct labor and manufacturing overhead.

The unit cost can be calculated by dividing the total manufacturing costs for the period by the units produced during the period

For plant assets cost includes the purchase price and the cost of design and construction

For intangible assets cost includes the purchase price and development costs

Due to their indefinite nature intangible assets are not subject to amortization

The organization must expense any cost incurred in developing a plant asset