ACC 350 Exam 3 Question and answers
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process costing system characterized by - correct answer ✔a large number
of homogeneous products passing through a series of processes where each
process in responsible for one or more operations that brings a product closer
to completion
process - correct answer ✔a series of activities (operations) that are linked to
perform a specific objective
process vs job costing differences (2 key) - correct answer ✔1. job order
accumulates cost production costs by job, process costing accumulates by
process
2. job order uses one WIP account whereas process costing has WIP for
every process
labor costs in process costing system - correct answer ✔There is no need
assign time tickets since laborers typically work entire shift within one process.
No detailed tracking of labor costs required. Moreover, labor is usually such a
small percentage in process costing systems that it is lumped in with
overhead (conversion cost grouping)
costs transferred in - correct answer ✔With no WIP inventories, all costs are
transferred in from previous processes.
Cost transferred out = DM + DL + AppOH + Costs transferred in
, production report - correct answer ✔the document that summarizes the
manufacturing activity that takes place in a process department for a given
period of time. The production report also serves as a source document for
transferring costs from the work-in-process account of a prior department to
the work-in-process account of a subsequent department. In the department
that handles the final stage of processing, it serves as a source document for
transferring costs from the work-in-process account to the finished goods
account.
A production report provides information about the physical units processed in
a department and also about the manufacturing costs associated with them.
Thus, a production report is divided into a unit information section and a cost
information section. The unit information section has two major subdivisions:
(1) units to account for and (2) units accounted for. Similarly, the cost
information section has two major subdivisions: (1) costs to account for and
(2) costs accounted for. In summary, a production report traces the flow of
units through a department, identifies the costs charged to the department,
shows the computation of unit costs, and reveals the disposition of the
department's costs for the reporting period.
Unit cost - correct answer ✔= (DM + DL + OH) / Product Output
cost of services sold - correct answer ✔= unit cost * unit produced
reduction in unit cots (profit change) - correct answer ✔= savings /
production output
production output is usually the same as - correct answer ✔units produced
role of ABC in process costing - correct answer ✔ABC is used for overhead
assignment and can be used to assign costs to processes
rated A+ 2025
process costing system characterized by - correct answer ✔a large number
of homogeneous products passing through a series of processes where each
process in responsible for one or more operations that brings a product closer
to completion
process - correct answer ✔a series of activities (operations) that are linked to
perform a specific objective
process vs job costing differences (2 key) - correct answer ✔1. job order
accumulates cost production costs by job, process costing accumulates by
process
2. job order uses one WIP account whereas process costing has WIP for
every process
labor costs in process costing system - correct answer ✔There is no need
assign time tickets since laborers typically work entire shift within one process.
No detailed tracking of labor costs required. Moreover, labor is usually such a
small percentage in process costing systems that it is lumped in with
overhead (conversion cost grouping)
costs transferred in - correct answer ✔With no WIP inventories, all costs are
transferred in from previous processes.
Cost transferred out = DM + DL + AppOH + Costs transferred in
, production report - correct answer ✔the document that summarizes the
manufacturing activity that takes place in a process department for a given
period of time. The production report also serves as a source document for
transferring costs from the work-in-process account of a prior department to
the work-in-process account of a subsequent department. In the department
that handles the final stage of processing, it serves as a source document for
transferring costs from the work-in-process account to the finished goods
account.
A production report provides information about the physical units processed in
a department and also about the manufacturing costs associated with them.
Thus, a production report is divided into a unit information section and a cost
information section. The unit information section has two major subdivisions:
(1) units to account for and (2) units accounted for. Similarly, the cost
information section has two major subdivisions: (1) costs to account for and
(2) costs accounted for. In summary, a production report traces the flow of
units through a department, identifies the costs charged to the department,
shows the computation of unit costs, and reveals the disposition of the
department's costs for the reporting period.
Unit cost - correct answer ✔= (DM + DL + OH) / Product Output
cost of services sold - correct answer ✔= unit cost * unit produced
reduction in unit cots (profit change) - correct answer ✔= savings /
production output
production output is usually the same as - correct answer ✔units produced
role of ABC in process costing - correct answer ✔ABC is used for overhead
assignment and can be used to assign costs to processes
