Process Costing and Conversion Costs - True/False Worksheet

• true

• false

Process operations involve the mass production of similar products in a continuous flow of sequential processes.

• true

• false

In a process costing system, costs are only measured after completion of each job.

• true

• false

4) The cost object in a process costing system is the specific job.

• true

• false

In a process costing system, companies end each period with only Finished Goods Inventory.

• true

• false

Equivalent units of production are always the same as the total number of physical units finished during the period.

• true

• false

A manufacturer reports units completed and transferred out of 340,000 units and ending work in process inventory of 130,000 units that are 75% complete with respect to conversion. Total equivalent units of production for conversion equal 470,000.

• true

• false

Conversion costs consist of direct materials and factory overhead.

• true

• false

Conversion costs consist of direct labor and factory overhead.

• true

• false

• true

• false