ACNT 2402 Chapter 04 -- Process Costing – Questions and Answers 2023& study guide with complete solution

1. When materials are purchased in a process costing system, a materials account is debited with the cost of the materials. TRUE 2. Costs are accumulated by department in a process costing system. TRUE 3. The following journal entry would be made in a processing costing system when units that have been completed with respect to the work done in Processing Department Z are transferred from Processing Department Z to Processing Department Y: Work in Process, Department Z XX X Work in Process, Department Y XX X FALSE 4. The units in beginning work in process inventory plus the units in ending work in process inventory must equal the units transferred out of the department plus the units started into production. FALSE 5. 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 6. 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 7. In calculating cost per equivalent unit under the weighted-average method, prior period costs are not combined with current period costs. FALSE Page 2 of 12 8. Under the weighted-average method of process costing, costs from the prior period are averaged with those of the current period in computing unit costs. TRUE 9. Using process costing, it is necessary to consider the stage of completion of the units when assigning conversion cost to partially completed units in the ending work in process inventory. TRUE 10. The "costs accounted for" portion of the cost reconciliation report includes the cost of beginning work in process inventory and the cost of units transferred out. FALSE 11. The "costs to be accounted for" portion of the cost reconciliation report includes the cost of ending work in process inventory and the costs added during the period. FALSE 12. The "costs accounted for" portion of the cost reconciliation report includes the cost of beginning work in process inventory and the costs added to production during the period. FALSE 13. The "costs to be accounted for" portion of the cost reconciliation report includes the cost of beginning work in process inventory and the costs added during the period. TRUE 14. Process costing is used in those situations where many different products or services are produced each period to customer specifications. FALSE 15. A job-orde