Ch 5.docx - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Cost for direct materials direct labor and manufacturing overhead are assigned to each job A separate work

Ch 5.docx - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Cost for...

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1. Cost for direct materials, direct labor and manufacturing overhead are assigned to each job. 2. A separate work in process inventory account is maintained for each process. 3. Unique or custom-made goods use a job costing system. 4. Both process and job costing assign costs to units as they proceed through the process. 5. Each manufacturing process will have a WIP inventory account. 6. In a job cost system, all costs flow to a particular job. 7. Prime costs include direct labor and direct materials. 8. Conversion costs are the sum of direct labor and manufacturing overhead. 9. Indirect labor would be a component of conversion costs. 10. In process costing, the costs flow from Work in Process Inventory, to Raw Materials Inventory, to Finished Goods Inventory 11. To simplify the accounting, the journal entry to record the transfer of costs from one WIP account to the next WIP account is generally made once a month to reflect ALL physical transfers that occurred during the month. 12. In process costing, the manufacturing costs assigned to the product must always follow the physical movement of the product. 13. The costs moved from one processing department to the next processing department are called “transported- out” costs in the first department and “transported-in” costs in the next department 14.When units are moved from one processing department to the next, the cost associated with those units must also be moved from one WIP account to the next. These costs are called: A. transported costs.B. transmitted costs.C. conveyed costs.D. transferred costs. 15. Hallow Company produces ping pong balls using a three-step sequential process that includes molding, coloring and finishing. When the balls are completely finished, out of which account should their cost be transferred? 16. Hallow Company produces ping pong balls using a three-step sequential process that includes molding, coloring and finishing. At what stage would the ping-pong balls be allocated manufacturing overhead? 17. What are the two basic types of product costing systems?
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  • Winter '18
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