acct ch 17 – Flashcards
Unlock all answers in this set
Unlock answersquestion
Process cost systems are used to apply costs to unique products produced individually.
answer
False
question
In a process cost system, costs are assigned only to
answer
work in process, finished goods, and cost of goods sold.
question
The accumulation of the costs of materials, labor, and overhead is similar in job order and process costing.
answer
True
question
In a process cost system
answer
the unit cost is total manufacturing costs for the period divided by the units produced during the period.
question
A primary driver of overhead costs in continuous manufacturing operations is
answer
machine hours.
question
Fewer materials requisitions are generally required in a process cost system than in a job order cost system.
answer
True
question
In a process cost system, manufacturing overhead
answer
is assigned to a work in process account for each production department on the basis of a predetermined overhead rate.
question
In computing equivalent units using the weighted-average method, ___________________ is not part of the equivalent units of production formula.
answer
beginning work in process
question
Equivalent units are the actual units worked on during a period even if they are not completed.
answer
False
question
Conversion costs are the sum of
answer
labor costs and overhead costs.
question
In determining the units completed and transferred out, the units in ending work in process are
answer
deducted from total units to be accounted for.
question
Unit production costs are costs expressed in terms of equivalent units of production.
answer
True
question
The total costs accounted for in a production cost report are equal to the
answer
cost of units completed and transferred out plus the cost of ending work in process.
question
The final step in preparing a production cost report is to
answer
prepare a cost reconciliation schedule.
question
The total units to be accounted for is computed by adding
answer
beginning units in process to units started into production.
question
Equivalent units are computed for
answer
materials and conversion costs.
question
When equivalent units of production are different for materials and conversion costs, companies compute unit costs for
answer
all of these options.
question
In a cost reconciliation schedule, costs accounted for is computed by adding the cost of the
answer
ending work in process and the cost of units transferred out.
question
Companies often use a combination of a process cost and a job order cost system, called operations costing.
answer
True
question
A production cost report
answer
shows costs charged to a department and costs accounted for.
question
The production cost report has all of the following sections except
answer
all of these options are sections.
question
Of the four steps in preparing a production cost report, which step occurs first?
answer
Compute the physical unit flow.
question
The cost reconciliation schedule shows that the total
answer
costs accounted for equal the total costs to be accounted for.
question
In a production cost report, units to be accounted for are calculated as
answer
units started in production + units in beginning work in process.
