ACCT 3100 Process Costing Ch.4
When using process costing, which of the following can be added in any department?
Materials, labor, and overhead
Industries/products more suitable for process costing than job-order costing include ______.
Paper towels, Flour, Sunscreen
A product requires processing in two departments, A and B. Products start in Dept. A. Costs transferred out of Dept. A will be transferred to ______.
Work in process- Department B
In process costing, manufacturing overhead costs are distributed to each department ______.
according to the amount of the allocation base incurred in the department
The journal entry to record material cost in the second department includes a (debit/credit) to Work in Process-Department #2.
debit
Process costing accumulates costs by
department
Each department has a separate Work in Process account when using ______ costing.
process
Industries that convert raw materials into homogeneous products typically use costing.
process
A processing department is an organization unit ______.
where work is performed on a product, and materials, labor or overhead are added
When using process costing, a separate ______ account is maintained for each processing department.
work in process
Similarities between job-order costing and process costing include the ______.
Manufacturing accounts used, basic purpose to assign and compute product costs, flow of costs through the manufacturing account
Work is performed on products, and materials, labor, or overhead costs are added to products in a(n) department
Processing
True or false: Process costing is used when a company produces a continuous flow of units that are homogeneous.
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 a particular customer order.
Once production is completed in all processing departments, production costs are transferred to ______.
Finished goods
The two common methods for determining unit product costs are ____ costing
Job order and process
The journal entry to record labor cost in the first department is (debit/credit) Wages payable and (debit/credit) Work in process-Department #1.
credit, debit
