Pop Quiz 8 - ACMB213

In order to compute the physical unit flow, a company must first compute unit production costs.

• TRUE

• FALSE

When there is no beginning and no ending 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.

• TRUE

• FALSE

When finished goods are sold, the journal entry to record the cost of goods sold :

Dr Finished Goods Inventory

Cr. Cost of Goods Sold

• TRUE

• FALSE

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.

• TRUE

• FALSE

Companies can use a combination of a process costing and a job-order costing system at the same time.

• TRUE

• FALSE

When equivalent units of production are different for materials and conversion costs, unit costs are computed for materials, conversion, and total manufacturing.

• TRUE

• FALSE

Equivalent units of production must be calculated before the unit production costs can be computed.

• TRUE

• FALSE

There are no units in process at the beginning of the period, 1,500 units in process at the end of the period that are 40% complete, and 15,000 units transferred out during the period. Based on this information, there were 14,400 equivalent units of production during the period.

• TRUE

• FALSE

Process costing system focuses on the process involved in mass-producing products that are very similar in nature.

• TRUE

• FALSE

Process costing systems are used to apply costs to a specific job, such as the manufacturing of a specialized machine.

• TRUE

• FALSE