Test 2 - True or False

If materials are only added at the beginning of the production process, then the degree of completion for materials in the ending Work-in-Process Inventory is always 100%.

True

If the Beginning Balance (BB) equals the Ending Balance (EB), then the Transfers In (TI) equal the Transfers Out (TO).

True

Job shops have three types of inventory accounts: Direct Materials, Work-in-Process, and Finished Goods.

True

Process costing assumes all units are homogeneous and follow the same path through the production process.

True

Process costing systems do not separate and record direct material and direct labor costs for each individual unit of product.

True

The journal entry to apply manufacturing overhead costs to completed jobs credits either Applied Manufacturing Overhead or Manufacturing Overhead (Control).

True

The single-stage cost allocation system uses a plantwide rate because the cost pool is the entire plant.

True

The weighted-average approach to process costing combines the work and costs done in prior periods with the work and costs done in the current period.

True