Chapter 16 Test Review

The parts of the process cost report include:

cost assignment and reconciliation. physical flow of units. equivalent units of production.

journal entry to record the use of indirect materials in process costing is to

debit Factory Overhead and credit Raw Materials Inventory

journal entry to record the transfer of completed work in process to finished goods in process costing is a(n)

decrease in one asset and an increase in another asset

journal entry to record the purchase of materials on account in process cost accounting is a(n):

increase in assets and an increase in liabilities The debit is to Raw Materials inventory and the credit is to Accounts Payable.

journal entry to record direct labor used in process costing is a(n)

increase in assets and an increase in liabilities.

The cost of units transferred from Work in Process Inventory to Finished Goods Inventory is called the cost of goods

manufactured

4 steps process costing

physical flow, equivalent units of production, cost per equivalent unit, assign and reconcile costs

The journal entry to record the use of direct materials in process costing is to:

debit Work in Process Inventory and credit Raw Materials Inventory. increase in one asset and a decrease in another asset.

When indirect materials are used in process costing, the effect on the Raw Materials Inventory account is:

A decrease