Question

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 Drjob-costing and.precess costing 11) 12) The system normally used to assign costs to goods that are mass-produced in a continuous sequence of steps is known as which of the following? A) process costing 12) B) job costing C) fixed costing D) LIFO costing 13) 느 13) Process costing is most likely used in which of the following industries? B) aircraft A) printing chemicals D) construction 14) In a process costing system, cost of work in process-department 1 is transferred where? A) to manufacturing overhead C) to cost of goods sold 14) B) to work in process-department 2 D) to finished goods inventory 15) In a process costing system, direct labor and manufacturing overhead are normally incurred when? A) at the end of the process C) in full at the beginning of the process 15) B) evenly throughout the process D) not recorded 16) 16) Which of the following companies would use process costing? A) DBA Management Consultants C) PepsiCo, producer of Pepsi products B) APlus Advertising D) Special Speedy Printing 17) 17) Which of the following is unique to a process costing system? A) Work is not started on a product until an order has been received B) The costs for each process stay with that process until the products are completed and moved to Finished Goods Inventory C) Each process has its own separate Work in Process Inventory account D) Direct materials, direct labor, and manufacturing overhead are assigned to the first process only

Answer 1

11) Option B: FIFO and Weighted Average systems are the basice types of product costing systems. All others are not basic systems. They are applied in particular cases.

12) Option A: Process Costing is used to account for sequential production because it involves multiple processes to complete entire production.

13) Option C: Chemical industry uses process costing as it involves several processes to produce chemicals.

14) Option B: Transferred to Work-in-process department 2 because till all the processes are completed, finished goods are not produced.

15) Option B: Direct labor and overheads are incurred throughout the production in various processes.

16) Option C: Pepsi Co. uses process costing because the production involves various processes.

17) Option C: Each process will have separate work-in-process inventory account.