ilaydakilic_ACC502_Assignment 3

ilaydakilic_ACC502_Assignment 3 - (FALSE The “job order...

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Ilayda Kilic ACC502- Assignment3 Professor Mohammed Chowdhury Assignment 3 E3-1: Allen Labinski has prepared the following list of statements about process cost accounting. Identify each statement as true or false. If false, indicate how to correct the statement. 1. Process cost systems are used to apply costs to similar products that are mass-produced in a continuous fashion. (TRUE) 2. A process cost system is used when each finished unit is indistinguishable from another. (FALSE) Once production begins, it continues until the finished product emerges. Each unit of finished product is indistinguishable from every other unit. 3. Companies that produce soft drinks, motion pictures, and computers chips would all use process cost accounting. (FALSE)   companies that mass-produce similar products in a continous fashion use process cost systems. Use process cost systems when they produce a large volume of uniform or relatively homogeneous products. 4. In a process cost system, costs are tracked by individual jobs.
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Unformatted text preview: (FALSE) The “job order cost system” is used when products are made based on specific customer orders. Each product produced is considered a job. Costs are tracked by job. 5. Job order costing and process costing track different manufacturing costs elements. (FALSE) 6. Both job order costing and process costing account for direct materials, direct labor, and manufacturing overhead. (TRUE) 7. Costs flow through the accounts in the same basic way for both job order costing and process costing. (TRUE) 8. In a process cost system, only one work in process account is used. (FALSE) 9. In a process cost system, costs are summarized in a job cost sheet. (FALSE) A job cost sheet is a form used to record the costs chargeable to a specific job and to determine the total and unit cost of the completed job. 10. In a process cost system, the unit cost is total manufacturing costs for the period divided by the units produced during the period. (TRUE) Page 1 of 1...
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