ACNT 2402Chapter 04 - Study Guide Questions and Answers(2022/2023)

Chapter 04 -- Process Costing – Study Guide 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