Process Costing

Equivalent units of production are computed to assign costs to partially completed units.

• TRUE

• FALSE

Process costing is applicable when manufacturing heterogeneous products.

• TRUE

• FALSE

The flow of costs through the manufacturing accounts is basically the same in both job order and process costing.

• TRUE

• FALSE

The EUP will be the same under FIFO method and weighted average method if there is no beginningwork in process inventory.

• TRUE

• FALSE

The weighted average method combines work in process beginning and started in process finished and transferred units.

• TRUE

• FALSE

Using the process costing, the companies will use separate work in process account for each production department.

• TRUE

• FALSE

Under the weighted average method, the equivalent units used to compute the unit costs of ending inventories relate only to work done during the current period.

• TRUE

• FALSE

Process costing is used to account for products that needs further processing.

• TRUE

• FALSE

Using the weighted average, if materials are added at the start of the process, the EUP for materials is equal to the units completed and transferred.

• TRUE

• FALSE

EUP calculations are necessary to allocate product costs between units sold and ending work in process.

• TRUE

• FALSE