QUIZ 1 : TOPIC 8 [PROCESS COSTING]

Process cost accounting focuses on the process involved in mass-producing products that are very similar in nature

• True

• False

A company that produces motion pictures would likely use a process cost system

• True

• False

In a process costing system, costs are tracked through a series of connected manufacturing processes or departments, rather than by individual jobs.

• True

• False

In a process cost system, materials, labor and overhead are only added in the first production department.

• True

• False

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.

• True

• False

Equivalent units of production are used to determine the cost per unit of completed products.

• True

• False

Equivalent units of production is the sum of units completed and transferred out plus equivalent units of beginning work in process.

• True

• False

The first step performed in preparing a production cost report is computing the equivalent units of production.

• True

• False

The physical units in a department are another name for the equivalent units of production.

• True

• False

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.

• True

• False