Wojtek Nakowski has prepared the following list of statements about process cost accounting.Identify each statement as true or false.1.2.3.4.5.6.7.8.9.10.Process cost systems are used to apply costs to similar products that are mass-produced in acontinuous fashion.A process cost system is used when each finished unit is indistinguishable from another.Companies that produce soft drinks, motion pictures, and computer chips would all use process costaccounting.In a process cost system, costs are tracked by individual jobs.Job-order costing and process costing track different manufacturing cost components.Both job-order costing and process costing account for direct materials, direct labour, andmanufacturing overhead.Costs flow through the accounts in the same basic way for both job-order costing and process costing.In a process cost system, only one work in process inventory account is used.In a process cost system, costs are summarized in a job cost sheet.In a process cost system, the unit cost is the sum of materials costs and conversion costs, each dividedby their respective equivalent units.

Name: Wojtek Nakowski has prepared the following list of statements about p
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Description: Wojtek Nakowski has prepared the following list of statements about process cost accounting.Identify each statement as true or false.1.2.3.4.5.6.7.8.9.10.Process cost systems are used to apply costs to similar products that are mass-produced in acon

True or false of each statement with proper justification are explained below. For determination of…

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Wojtek Nakowski has prepared the following list of statements about process cost accounting. Identify each statement as true or false. 1. 2. 3. Process cost systems are used to apply costs to similar products that are mass-produced in a continuous fashion. A process cost system is used when each finished unit is indistinguishable from another. Companies that produce soft drinks, motion pictures, and computer chips would all use process cost accounting. A

Wojtek Nakowski has prepared the following list of statements about process cost accounting. Identify each statement as true or false. 1. 2. 3. Process cost systems are used to apply costs to similar products that are mass-produced in a continuous fashion. A process cost system is used when each finished unit is indistinguishable from another. Companies that produce soft drinks, motion pictures, and computer chips would all use process cost accounting. A

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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A specialty instrument manufacturer is in the process of establishing a cost system. The company produces machines that are unique and distinctive. These machines are produced when purchase requests are received from customers. Although some common parts and sub-assemblies are to be held in inventory, no finished goods inventory is maintained since each purchase request is for a customized specialty instrument. The type of cost accumulation system that would be best suited for this type of environment would be A. Just-in-time costing. B. Batch-level costing. □C. Job-order costing. □D. Process costing.
Accounting Direct labor or machine hours may not be the appropriate cost driver for overhead in all areas of manufacturing due to the complexities of many manufacturing processes. Many companies use activity-based costing (ABC) which uses multiple drivers (items that consume resources) rather than just one driver to apply overhead to their activities. With ABC, a company can use a cost driver that has a direct cause/effect relationship in its applied overhead costs. Waterways looked into ABC as a method of costing because of the variety of items it produces and the many different activities in which it is involved. The activities listed below area sample of possible cost pools for Waterways. Assembling Payroll Billing Plant supervision Digging trenches Product design Janitorial Purchasing materials Machine maintenance Selling Machine setups Testing Molding Welding Packaging Using the following information, determine the overhead rates and the actual cost assigned for each of the…
Samsung must assign overhead costs to its products. Activity-based costing is generally considered more accurate than other methods of assigning overhead. If this is so, why do all manufacturers not use it?
please question 5 and 6 is required. Thank you. ‘Process costing is a term used in cost accounting to describe one method for collecting and assigning manufacturing costs to the units produced.’ There are some statements about the process costing: 1. An abnormal loss occurs when expected output exceeds actual output.2. The scrap value of an abnormal loss is credited to the process account.3. The allocated cost of an abnormal gain is credited to the process account.4. The inputs to a process less the normal loss is the expected output.5. The normal loss in a process is allocated a cost in order to reconcile the costs of inputs and outputs.6. The FIFO method assumes opening WIP is the first group of units to be completed. Therefore, opening WIP is charged separately to completed production and CPU is based on current period costs.Required: Please identify which of the above statements are false and explain the reasons
Answer the question ASAP.
6. All of the following statements are correct EXCEPT for which of the following b. Units produced are indistinguishable from each other in a process costing system. a. Costs are accumulated by department when using process costing. c. Process costing has the same purposes as job costing. d. Process costing would be appropriate for a custom cabinet maker. 7. Conversion costs consist of a. direct materials + direct labor. b. direct materials + manufacturing overhead. c. direct labor + manufacturing overhead. d. direct materials + direct labor +
Job costing is use for products that: B D. are manufactured in a continuous process. are difficult to identify during production. is the most efficient method of calculating the cost of a product. is used to calculate the cost of a product when the product can be uniquely identified.
You have been employed as a cost accountant by Pared Inc. The president, I.M. Pared, is having a hard time understanding the flow of costs through the cost accounting system. Beginning with the purchase of material and ending with the transfer to cost of goods sold briefly flow chart (draw) and describe (write out) how the costs will travel through the cost accounting system explain this for me?
4. Mr Khizar has prepared the following list of statements about process cost accounting. а. 1. Process cost systems are used to apply costs to similar products that are mass-produced in a continuous fashion. b. 2. A process cost system is used when each finished unit is indistinguishable from another. 3. Companies that produce soft drinks, motion pictures, and computer chips would all use process cost accounting. С. d. 4. In a process cost system, costs are tracked by individual jobs. 5. Job order costing and process costing е. track different manufacturing cost elements. f. 6. Both job order costing and process costing account for direct materials, direct labor, and manufacturing overhead. Instructions: Identify each statement as true or false. If false, indicate how to correct the statement.
1. Answer the following questions in your own words. a) Distinguish between Production management and Operations Management. b) Distinguish between manufacturing operations and service operations. c) Explain the scope of production and operations management in your own words. d) Define the term plant layout. Discuss the factors influencing the layout. e) Bring out the comparison between product layout and process layout. f) "An ideally laid out plant goes a long way in reducing manufacturing costs through reduced materials handling, reduced personnel and equipment requirements and reduced in-process inventory" – Elaborate.
Nobel Ltd adopts process costing rather than job costing. Which of the following statement could explain why? a. Nobel Ltd produces units according to customer specifications. b. Nobel Ltd wants to track the cost of material, labour and overhead to specific customers. c. Nobel Ltd wants to assign overhead using machine hours as the allocation base. d. Nobel Ltd manufactures virtually identical products using a series of continuous processes.
Nobis Company uses an ABC system. Which of the following statements is/are correct with respect to ABC?