Managerial Accounting, 4e (Whitecotton) Chapter 3 Process Costing
Under the weighted-average method, the only partially completed units that need to be addressed are the units in beginning inventory.
false
Process costing often combines direct materials and direct labor into a single category called conversion costs.
false
The key difference between a process costing production report prepared using one of the two acceptable methods is how they deal with any units and costs that are in ending Work in Process Inventory
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The process costing production report can be prepared using either the weighted-average method or the last-in, first-out (LIFO) method
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The process costing production report is used to determine how much manufacturing cost to transfer out of Finished Goods Inventory and into Cost of Goods Sold
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The production report contains information about the number of physical units and equivalent units, but not their costs
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The total cost of Work in Process incurred in one department during the period must be allocated between costs transferred to the next department and costs transferred to Finished Goods.
false
Under process costing when the product is through the last production process, the journal entry for total manufacturing cost includes a debit to Work in Process Inventory and a credit to Finished Goods Inventory
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Cost per equivalent unit is calculated separately for direct materials and for conversion costs.
true
Equivalent units for materials may differ from the equivalent units for conversion costs
true
Process costing is used to calculate the cost of homogenous goods or services.
true
Under the FIFO method, the units completed during the period must be allocated between beginning units in process and units started and completed.
true
A major difference between job order costing and process costing is the treatment of non-manufacturing costs.
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An equivalent unit is a measure used to convert costs incurred in the previous period to costs incurred in the current period.
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A separate Work in Process Inventory account is used in process costing for each major production process.
true
