Accounting Final
Which of the following are needed to compute the cost per equivalent unit for materials under the weighted-average method of process costing? Material cost assigned to beginning work in process Material cost added to production during the current period A) Yes Yes B) No Yes C) Yes No D) No No
A
Process costing is used in those situations where many different products or services are produced each period to customer specifications.
False
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 XXX Work in Process, Department Y XXX
False
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
Costs are accumulated by department in a process costing system
True
Under the weighted-average method of process costing, costs from the prior period are averaged with those of the current period in computing unit costs.
True
Using process costing, it is necessary to consider the stage of completion of the units when assigning conversion cost to partially completed units in the ending work in process inventory.
True
When materials are purchased in a process costing system, a materials account is debited with the cost of the materials.
True
For which situation(s) below would an organization be more likely to use a process costing system of rather than a job-order costing system? a paper mill that processes wood pulp into large rolls of paper a shop that restores old cars to "showroom" quality a framing shop that builds picture frames to order for individual customers a masonry company that builds brick walls, bulkheads, and walkways designed by architects
a paper mill that processes wood pulp into large rolls of paper
When the weighted-average method of process costing is used, a department's equivalent units are computed by:
adding the units transferred out to the equivalent units in ending inventory
