Question

correct answer

TRUE FALSE. Write T if the statement is true and F if the statement is false. 1) Unique or custom-made goods would be accounted for by using a process costing system 2) Conversion costs include direct labor and direct materials 3) in a process costing system, the cost per equivalent unit is computed after computing equivalent units 4) Assigning costs to units completed and to units in ending work in process inventory in a second department is a five step process. 5) Transferred-in costs are incurred in a previous process and are carried forward as part of the product's cost when it moves to the next process. 6) The cost per equivalent unit must be computed for direct materials, conversion and transferred in costs in a subsequent department 7) Equivalent units are the sum of direct materials used and direct labor incurred. 8) In a process costing system, a separate work in process inventory account is maintained for each process. 9) Direct materials, direct labor and manufacturing overhead are assigned to each manufacturing process in a process costing system 10) The weighted average process costing method may be used to assign costs to a second department. 10) MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 11) What are the two basic types of product costing systems? A) variable costing and process costing B) FIFO costing and weighted average costing C) department costing and plant costing D) job costing and process costing

Answer 1

True / False Answers

1) F

2) F

3) T

4) T

5) T

6) T

7) F

8) T

9) T

10) T

Multiple Choice Questions

11) D