Purchase Solution

Process Cost Systems

Not what you're looking for?

Ask Custom Question

Please help me with the True/False study guide for test review.

1. The cost of production report reports the cost of the goods sold.
a. True
b. False

2. In a process costing system, a separate work in process inventory account is maintained for each customer's job.
a. True
b. False

3. Process cost systems use job order cost cards to accumulate cost data.
a. True
b. False

4. When a process cost accounting system records the purchase of materials, the Materials account is credited.
a. True
b. False

5. The closer a company moves towards Just in Time production, the differences in unit costs between average costing and FIFO will be reduced.
a. True
b. False

6. Equivalent units of production are always the same as the total number of physical units finished during the period.
a. True
b. False

7. If the principal products of a manufacturing process are identical, a process cost system is more appropriate than a job order cost system.
a. True
b. False

8.The entry to transfer goods in process from Department X to Department Y includes a debit to Work in Process-Department X.
a. True
b. False

9. Gilbert Corporation had 25,000 finished units and 8,000 units were 35% complete. The equivalent units totaled 30,200.
a. True
b. False

10. If the costs for direct materials, direct labor, and factory overhead were $60,000, $35,000, and $25,000, respectively, for 20,000 equivalent units of production, the conversion cost per equivalent unit was $6.
a. True
b. False

Purchase this Solution

Solution Summary

This solution provides the correct answers with explanations to the process cost systems questions listed.

Solution Preview

1. The cost of production report reports the cost of the goods sold.
b. False
The cost of production report never reports COGS.

2. In a process costing system, a separate work in process inventory account is maintained for each customer's job.
b. False
A separate work in process account is maintained for each process, not for each job.

3. Process cost systems use job order cost cards to accumulate cost data.
b. False
Job order cost cards are used in job order costing, not process costing.

4. When a process cost accounting system records the ...

Purchase this Solution


Free BrainMass Quizzes
Transformational Leadership

This quiz covers the topic of transformational leadership. Specifically, this quiz covers the theories proposed by James MacGregor Burns and Bernard Bass. Students familiar with transformational leadership should easily be able to answer the questions detailed below.

Team Development Strategies

This quiz will assess your knowledge of team-building processes, learning styles, and leadership methods. Team development is essential to creating and maintaining high performing teams.

Paradigms and Frameworks of Management Research

This quiz evaluates your understanding of the paradigm-based and epistimological frameworks of research. It is intended for advanced students.

MS Word 2010-Tricky Features

These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.