Ch 18 Process Costing
When raw materials are purchased on account, the journal entry to record this transaction includes a
Debit to Raw Materials Inventory
The Manufacturing Overhead account is debited any time overhead is allocated to the production departments and the Manufacturing Overhead account is credited any time actual overhead costs are recorded.
False
To determine the cost per unit for a department in a process costing system, simply divide the total costs for the department by the total number of units produced for the period.
False
What is the first step in completing a production cost report?
Summarizing the flow of physical units
A process costing system is used to accumulate costs by process for companies that produce large quantities of similar products.
True
