1. Which of the following statement is not a feature of process costing system? The cost of completed units of one production process becomes the raw material input of the next production process. а. Incomplete units at each stage of production process are converted into equivalent units based on the degree of incompleteness. b. Because the manufacturing process is continuous, the production cost is allocated between the completed and uncompleted units at the end of the accounting period. с. d. None of the above Which of the following statement is correct with respect to job order costing and process costing? 2. The selection between job order costing and process costing depends on the nature of the products and the methods of processing them. In job order costing, costs are accumulated for each job while in process costing, costs are accumulated for each process." In process costing, production is transferred from one process to another until the products are fully completed. No such transfers generally takes place under job order costing. a. b. . TAICPAJ In computing the current period's manufacturing cost per equivalent unit, the FIFO method of process costing considers current period costs, а. d. All of the above only b. less cost of beginning work in process inventory plus cost of ending work in process inventory d. plus cost of beginning work in process inventory С. material G is added when a batch Is 60 percent complete. 50 percent complete, would be included in
1. Which of the following statement is not a feature of process costing system? The cost of completed units of one production process becomes the raw material input of the next production process. а. Incomplete units at each stage of production process are converted into equivalent units based on the degree of incompleteness. b. Because the manufacturing process is continuous, the production cost is allocated between the completed and uncompleted units at the end of the accounting period. с. d. None of the above Which of the following statement is correct with respect to job order costing and process costing? 2. The selection between job order costing and process costing depends on the nature of the products and the methods of processing them. In job order costing, costs are accumulated for each job while in process costing, costs are accumulated for each process." In process costing, production is transferred from one process to another until the products are fully completed. No such transfers generally takes place under job order costing. a. b. . TAICPAJ In computing the current period's manufacturing cost per equivalent unit, the FIFO method of process costing considers current period costs, а. d. All of the above only b. less cost of beginning work in process inventory plus cost of ending work in process inventory d. plus cost of beginning work in process inventory С. material G is added when a batch Is 60 percent complete. 50 percent complete, would be included in
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Question
Transcribed Image Text:[AICPAJ In a process cost system, the application of factory overhead usually would
1.
Which of the following statement is not a feature of process costing system?
The cost of completed units of one production process becomes the raw
material input of the next production process.
a.
b.
Incomplete units at each stage of production process are converted into
equivalent units based on the degree of incompleteness.
Because the manufacturing process is continuous, the production cost is
allocated between the completed and uncompleted units at the end of the
accounting period.
C.
d.
None of the above
2.
Which of the following statement is correct with respect to job order costing and
process costing?
The selection between job order costing and process costing depends on the
nature of the products and the methods of processing them.
a.
In job order costing, costs are accumulated for each job while in process
costing, costs are accumulated for each process.
b.
In process costing, production is transferred from one process to another until
the products are fully completed. No such transfers generally takes place
under job order costing.
C.
TAICPAJ In computing the current period's manufacturing cost per equivalent unit, the
FIFO method of process costing considers current period costs
only
d.
All of the above
3.
a.
b.
less cost of beginning work in process inventory
plus cost of ending work in process inventory
d.
plus cost of beginning work in process inventory
C.
4.
the computation of equivalent units for
Material G
No
Conversion costs
a.
Yes
Yes
b.
No
No
C.
No
Yes
d.
Yes
CHAPTER 8 Process Costing: General Procedures
213
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5.
be recorded as an increase in:
a.
finished goods inventory control
b.
factory overhead control
C.
cost of goods sold
d.
work in process inventory control
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