Cost Exam 2 Study Set 2 with all Correct & 100% Verified
Answers |Latest Version |Guaranteed to Pass
In process costing, manufacturing overhead is charged to each production department, while
direct materials and direct labor are allocated directly to the specific jobs. true or false
✔Correct Answer-false
All products must go through the exact same departments and processes in order for a
company to use process costing. true or false ✔Correct Answer-false
In a process-costing system, per-unit costs are generally calculated on a monthly basis. true or
false ✔Correct Answer-true
Direct materials and conversion costs are usually tracked separately when determining
equivalent units of production. true or false ✔Correct Answer-true
It is not necessary to track the various product costs separately in a production process because
costs are generally incurred uniformly. true or false ✔Correct Answer-false
Equivalent Units must be calculated as part of the process in properly determining the per-unit
costs of direct materials and conversion costs for the period. true or false ✔Correct Answer-
ture
The sum of costs added this period and those in beginning inventory should equal the sum of
the costs in ending inventory and the cost of goods sold. true or false ✔Correct Answer-true
n a company with multiple sequential production processes, the costs transferred out of one
department become "transferred in" costs in the next sequential department. ✔Correct
Answer-true
The journal entry to record the purchase of materials for use in production includes a debit to
Work in Process Inventory. ✔Correct Answer-false
Debit raw materials inventory and credit accounts payable.
The journal entry to record the accrual of wages for direct labor includes ✔Correct Answer-
Debit raw materials inventory and credit accounts payable.
The journal entry to record the completion of the production process for a manufacturing firm
includes ✔Correct Answer-debit to finished goods
Answers |Latest Version |Guaranteed to Pass
In process costing, manufacturing overhead is charged to each production department, while
direct materials and direct labor are allocated directly to the specific jobs. true or false
✔Correct Answer-false
All products must go through the exact same departments and processes in order for a
company to use process costing. true or false ✔Correct Answer-false
In a process-costing system, per-unit costs are generally calculated on a monthly basis. true or
false ✔Correct Answer-true
Direct materials and conversion costs are usually tracked separately when determining
equivalent units of production. true or false ✔Correct Answer-true
It is not necessary to track the various product costs separately in a production process because
costs are generally incurred uniformly. true or false ✔Correct Answer-false
Equivalent Units must be calculated as part of the process in properly determining the per-unit
costs of direct materials and conversion costs for the period. true or false ✔Correct Answer-
ture
The sum of costs added this period and those in beginning inventory should equal the sum of
the costs in ending inventory and the cost of goods sold. true or false ✔Correct Answer-true
n a company with multiple sequential production processes, the costs transferred out of one
department become "transferred in" costs in the next sequential department. ✔Correct
Answer-true
The journal entry to record the purchase of materials for use in production includes a debit to
Work in Process Inventory. ✔Correct Answer-false
Debit raw materials inventory and credit accounts payable.
The journal entry to record the accrual of wages for direct labor includes ✔Correct Answer-
Debit raw materials inventory and credit accounts payable.
The journal entry to record the completion of the production process for a manufacturing firm
includes ✔Correct Answer-debit to finished goods
