Is the accounting for process costing significantly different from job order costing? 1.Yes 2.No
Is the basis for assigning costs in manufacturing the same under a process costing system as in a job order costing system? 1.Yes 2.No
Would all ice cream manufacturing companies use the same process costing system that Dreyer’s Grand Ice Cream Holdings, Inc. uses? 1.Yes 2.No
Does the use of a process costing system produce the same end results (per unit cost) as a job order costing system? 1.Yes 2.No
Does a manufacturing company such as Dreyer’s Grand Ice Cream Holdings, Inc. find it difficult to accumulate and assign manufacturing costs using a process costing system? 1.Yes 2.No
Process manufacturers do not typically use large machines to process a flow of raw materials into a finished state. 1.True 2.False
Materials cost are a large portion of the costs for process manufacturers. 1.True 2.False
In a process cost system, an accountant determines the cost transferred out and thus the amount remaining in inventory for each department using cost flow assumptions such as straight-line, declining balance or units-of- production. 1.True 2.False
Most process manufacturers have only one department. 1.True 2.False
The journal entry to record the purchase of materials on account is the same under a process cost system and a job order cost system. 1.True 2.False
Yield is the ratio of the materials output quantity to the input quantity. 1.True 2.False
A just-in-time system achieves production efficiencies and flexibility by reorganizing the traditional production process. 1.True 2.False
Which of the following is not a similarity between job order and process cost systems? 1.They both accumulate costs 2.They both allocate costs to products 3.They both categorize costs into the cost of goods sold 4.They both use product cost data for decision making
The primary differences between job order and process costing systems include all of the following except that 1.under process costing, manufacturing costs are accumulated to departments rather than jobs 2.under process costing, manufacturing costs are accumulated into different accounts under the systems 3.under process costing, manufacturing costs are accumulated and transferred between departments 4.under process costing, manufacturing costs are allocated to products based on units of production
Which of the following is not a step in determining the cost of goods completed and the ending inventory valuation in a process cost system? 1.Determine the cost per equivalent unit 2.Compute full units of production 3.Determine the units to be assigned costs 4.Allocate costs to transferred and partially completed units
In a process cost system, 1.a Work In Process account is maintained for each job 2.only one Work In Process account is maintained 3.a Work In Process account is maintained for each process 4.a Work In Process account is never used
The portion of whole units that are completed with respect to either materials or conversion costs within an accounting period are called 1.whole units of production 2.equivalent units of production 3.work-in-process units of production 4.partial units of production
10,000 units in process that are 40% complete are equal to 1.4,000 equivalent units of production 2.10,000 equivalent units of production 3.6,000 equivalent units of production 4.4,000 metric units of production
Which of the following manufacturing cost(s) occur in a process cost system? 1.Direct labor 2.Direct materials 3.Manufacturing overhead 4.All of these choices
The ending inventories computed for a process cost system manufacturer would be reported on 1.its balance sheet 2.its income statement 3.its retained earnings statement 4.worksheet
In a process cost accounting system, the manufacturing costs are summarized on a 1.job cost sheet 2.cost of production report 3.manufacturing worksheet 4.process order cost sheet
In a just-in-time system, processing functions are combined into work centers called 1.manufacturing cells 2.cost centers 3.revenue centers 4.investment centers