Question

ACCT 1090 Chapter 20 T Name es 1) in a processing tech proceso de las i n Werk-ProceInventory account 2) Unde proc e process that uses them d e re to Work in procesory for each soonlete 3) The combined production Goods Sold count from all part l y her the c o on dodacts are d uction proces to the Couto 4) Under process costing the unit cost of the complete s than the cost of the n e w 5) in a process costing system, department's total product cardina the total cost transferred out of the department d 6) Conversion costs include the cost of purchasing and conting w o rd products 7) In a production cost report the number of units accounted for stort fortalways be greater than the o 8) The cost amounts that are transferred out from one process to for the receiving process. other process become transferred in costs 9) The weighted average method determines the cost of equivalent units of production by accounting for beginning inventory costs separately from current period costs 9 10) The cost per equivalent unit for transferred in units is calculated by dividing total transferred in costs by the equivalent units of production for transferred in. 11) Cost amounts that are transferred out of one process become the transferred in cost for the next process. 12) The Raw Materials Inventory account is debited when direct materials are issued for production 13) When indirect materials are issued to production, the Manufacturing Overhead account is credited. 14) Under process costing depreciation on plant machinery is debited to the respective process's Work-in-Process Inventory 15) 15) A predetermined overhead allocation rate is used to allocate direct materials cost to various processes or departments.

Answer 1

1) True, as in production of a product many processes are involved . But some of the units remains uncompleted in every process .

2) True, the material and labour are assigned to the WIP inventory but only for the remaining portion to convert them into finished goods.

3) False, because cost of goods involves the treatment of opening and closing inventory also, hence those goods can be treated as cist of goods produced as per the rules of Cost Sheet.

4) False, the cost per unit of the finished goods is always more than incomplete goods because finished goods contains the cost of all processes but incomplete units doesn't.

5) False, it is not always possible that total department cost must equal to the cost transferred .It is only because of the reason that some of the inventory of that process remains uncompleted. Hence , a part of cost of that period could not be wholly transferred to next department.