{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

chap004(3) - Chapter 004 Systems Design Process Costing...

Info icon This preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 004, Systems Design: Process Costing True / False Questions 1. In a process costing system, the costs of one processing department become part of the costs of the next processing department. TRUE AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting Learning Objective: 1 Level: Easy 2. (FIFO Supplement) The equivalent units of production will be the same under the weighted-average and the FIFO method if there is no beginning work in process inventory. TRUE AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting Learning Objective: 2 Learning Objective: 5 Level: Medium 3. Under the weighted-average method, the equivalent units used to compute the unit costs of ending inventories relate only to work done during the current period. FALSE AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Reporting Learning Objective: 2 Level: Hard 4-1
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Chapter 004, Systems Design: Process Costing 4. In order to equitably allocate costs in a process costing system, dissimilar products are restated in terms of equivalent units by weighting the number of units produced by their market values. FALSE AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting Learning Objective: 2 Level: Easy 5. In a process costing system, units transferred to the next processing department are presumed to be 100% complete with respect to the work performed by the transferring department. TRUE AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting Learning Objective: 2 Level: Easy 6. Under a weighted-average process costing system when all materials are added at the beginning of the production process, the equivalent units for materials is equal to the units completed and transferred out. FALSE AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Reporting Learning Objective: 2 Level: Hard 4-2
Image of page 2
Chapter 004, Systems Design: Process Costing 7. In calculating cost per equivalent unit under the weighted-average method, prior period costs are combined with current period costs. TRUE AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting Learning Objective: 3 Level: Easy 4-3
Image of page 3

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Chapter 004, Systems Design: Process Costing 8. (FIFO Supplement) The equivalent units of production for a department using the FIFO process costing method is equal to the number of units completed plus the equivalent units in the ending inventory. FALSE AACSB: Analytic AICPA BB: Critical Thinking AICPA FN: Reporting Learning Objective: 5 Level: Hard 9. The units in beginning work in process inventory plus the units started into production must equal the units transferred out of the department plus the units in ending work in process inventory. TRUE AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Reporting Learning Objective: 10 Level: Easy 10. In a process costing system, direct labor cost combined with manufacturing overhead cost is known as conversion cost.
Image of page 4
Image of page 5
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern