Question;1.;Process;cost accounting focuses on the process involved in mass-producing products that;are very similar in nature.;2.;Process;cost systems are used to apply costs to a specific job, such as the;manufacturing of a specialized machine.;3. A company that produces;motion pictures would likely use a process cost system.;4.;In;a process cost system, costs are tracked through a series of connected;manufacturing processes or departments, rather than by individual jobs.;5. In a process cost system;total costs are determined at the end of a month or year.;6. Separate work in process;accounts are maintained for each production department or manufacturing process;in a process cost system.;7.;In;a process cost system, materials, labor and overhead are only added in the;first production department.;8.;The;assignment of the three manufacturing cost elements to Work in Process in a;process cost system is the same as in a job order cost system.;9.;Fewer;materials requisitions are generally required in a process cost system than in;a job order cost system.;10. In a process cost system, all;labor costs incurred within a producing department are a cost of processing the;raw materials.;11. A primary driver of;overhead costs in continuous manufacturing operations is machine time used.;12. Equivalent units of;production are used to determine the cost per unit of completed products.;13. Equivalent units of;production measure the work done during a period, expressed in fully completed;units.;14. Equivalent units of;production is the sum of units completed and transferred out plus equivalent;units of beginning work in process.;15. The weighted-average method;of computing equivalent units is the most widely used method in practice.;16. There are no units in;process at the beginning of the period, 1,000 units in process at the end of;the period that are 40% complete, and 10,000 units transferred out during the;period. Based on this information, there were 9,600 equivalent units of;production during the period.;17. The first step performed in;preparing a production cost report is computing the equivalent units of;production.;18. Equivalent units of;production must be calculated before the unit production costs can be computed.;19. The physical units in a;department are another name for the equivalent units of production.;20. Unit material cost is;computed by taking total material costs charged to the department for the;period and dividing by the physical units in the process during the period.;21. When equivalent units of;production are different for materials and conversion costs, unit costs are;computed for materials, conversion, and total manufacturing.;22. The total manufacturing;cost per unit is used in costing the units completed and transferred during the;period.;23. A production cost report is;an internal document for management that shows production quantity and cost;data for a particular job.;24. Production cost reports;provide a basis for evaluating the productivity of a department.;25. Companies often use a;combination of a process cost and a job order cost system, called operations;costing.;26. Large inventories of raw;materials must be maintained in a just-in-time system.;27. Just-in-time strives to;eliminate inventories by using a pull approach.;28. Rework costs typically;increase in just-in-time processing.;29. Activity-based costing;(ABC) can be used only with process cost systems.;a30. ABC eliminates arbitrary assignments of;overhead.;31. In continuous process;manufacturing, generally once the production begins, it continues until the;finished product emerges.;32. One similarity of process;cost accounting with job order cost accounting is that both determine total;manufacturing costs after each job.;33. The flow of costs in a;process costing system requires that materials be added in one department;labor added in another department and manufacturing overhead in a third;department.;34. When finished goods are;sold, the entry to record the cost of goods sold is a debit to Finished Goods;Inventory and a credit to Cost of Goods Sold.;35. When there is no beginning;work in process and materials are entered at the beginning of the process;equivalent units of materials are the same as the units started into;production.;36. In order to compute the;physical unit flow, a company must first compute unit production costs.;37. In activity-based costing;the focus is on the activities performed to produce specific products.
Paper#41821 | Written in 18-Jul-2015Price : $21