Process Costing

What is STEP 2 in the Weighted-average method of process costing?

• Assign costs to units

• Compute the cost per equivalent unit

• Prepare a cost reconciliation report

• Compute the equivalent units of production

What is STEP 4 in the Weighted-average method of process costing?

• Compute the equivalent units of production

• Compute the cost per equivalent unit

• Assign costs to units

• Prepare a cost reconciliation report

Which costing is used by companies producing many different products?

• Job-Ordering Costs

• Processed Costs

• Job-Order Costing

• Process Costing

This is used when products have some common characteristics and some individual characteristics.

• Operative Costing

• Job-Order Costing

• Process Costing

• Operation Costing

This is a process costing method that calculates unit costs by combining costs and outputs from the current and prior periods.

• FIFO method

• Weighted-average method

• LIFO method

What does WIP stand for?

• Worms In Plant

• Work In Progress

• Work In Process

• Work In Pairs

_____________ = Number of partially completed units X Percentage completion

• Manufacturing Cost

• Equivalent Units

• Predetermined Overhead Rate

• The Area of a Square

It is an organizational unit where work is performed on a product and where materials, labors, or overhead costs are added to the product.

• Propelling Department

• Progressing Department

• Purchasing Department

• Processing Department

Which of the following is/are Similarities between Job-Order and Process Costing?

• Both systems have the same purpose.

• Both systems use the same manufacturing accounts.

• The flow of costs through the manufacturing accounts is basically the same in both systems.

• All of the Above

Which method provides a more up-to-date cost data for decision-making purposes?

• Weighted-average method

• FIFO method