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