Chapter 4: Process Costing
a processing department is an organizational unit
where work is performed on a product and material, labor and overhead are added
The journal entry to apply overhead cost to processing Department #1 is to debit
Work in process-Department #1 and credit Manufacturing overhead
the journal entry to record material cost in the second department includes a ___ to work in process
debit
process costing produces ___ units
homogeneous
the two common methods for determining unit product costs are ___ costing
job-order and process
the two most commonly used methods for determining unit product costs are ___-___ costing and ___ costing
job-order, process
Each department has a separate Work in Process account when using ______ costing.
process
In process costing, manufacturing overhead costs are
generally applied using a predetermined overhead rate
industries/products more suitable for process costing than job-order costing include
sunscreen; paper towels; flour
Work is performed on products, and materials, labor, and overhead costs are added to products in a(n) ___ department.
processing
True or false: The flow of costs through manufacturing accounts is basically the same for job-order costing and process costing.
true
which of the following is a key difference between process and job-order costing
under process costing it makes no sense to try to identify materials, labor and overhead costs with particular customer order
the journal entry to record labor cost in the first department is ___ wages payable and ___ work in process-Dept. #1
credit; debit
once production is completed in all processing department, production costs are transferred to ___
finished goods
similarities between job-order costing and process costing include the
flow of costs through the manu accts; manu accts used; basic purpose to assign and compute product costs
when using process costing, each processing department has a separate ___ ___ ___ account
work in process
a product requires processing in two depts, A and B. Product start in Dept. A. Costs transferred out of Dept. A will be transferred to
work in process - dept B
Which of the following is a key difference between process and job-order costing?
Under process costing, it makes no sense to try to identify materials, labor and overhead costs with a particular customer order.
process costing accumulates costs by
department