Chap004 - Chapter 04 - System Design: Process Costing...

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Unformatted text preview: Chapter 04 - System Design: Process Costing Chapter 04 System Design: Process Costing True / False Questions 1. The following journal entry would be made in a process costing system when units that have been completed in the final processing department are transferred to the finished goods warehouse: True False 2. In a process costing system, overhead is allocated to departments before being applied to units of product. True False 3. In order to use process costing, the output of a processing department should be homogeneous. True False 4. In process costing, the same equivalent units figure is used for both materials and conversion costs. True False 5. The "costs to be accounted for" portion of the cost reconciliation report includes the cost of beginning work in process inventory and the cost of ending work in process inventory. True False 6. The "costs accounted for" portion of the cost reconciliation report includes the cost of ending work in process inventory and the cost of units transferred out. True False 4-1 Chapter 04 - System Design: Process Costing Multiple Choice Questions 7. Process costing would be appropriate for each of the following except: A. custom furniture manufacturing. B. oil refining. C. grain milling. D. newsprint production. 8. An operation costing system is: A. identical to a process costing system except that actual manufacturing overhead costs are traced to units of product. B. the same as a process costing system except that direct materials costs are accounted for in the same way as in job order costing. C. the same as a job order system except that direct materials costs are accounted for in the same way as in process costing. D. identical to a job order costing system except that actual manufacturing overhead costs are traced to units of product. 9. Assume there is no beginning work in process inventory and the ending work in process inventory is 100% complete with respect to materials costs. The number of equivalent units with respect to materials costs under the weighted-average method is: A. the same as the number of units put into production. B. less than the number of units put into production. C. the same as the number of units completed. D. less than the number of units completed. 10. Assume there was no beginning work in process inventory and the ending work in process inventory is 70% complete with respect to conversion costs. Under the weighted-average method, the number of equivalent units of production with respect to conversion costs would be: A. the same as the units completed. B. less than the units completed. C. the same as the units started during the period. D. less than the units started during the period....
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This note was uploaded on 05/03/2011 for the course ACC 1410 taught by Professor Bauser during the Spring '11 term at Marion Technical College.

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Chap004 - Chapter 04 - System Design: Process Costing...

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