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

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Unformatted text preview: 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 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 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 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....
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This note was uploaded on 12/02/2009 for the course ACC 201 taught by Professor Lewis during the Spring '09 term at NC Wesleyan.

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

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