Cost accoutning
Chapter 6--Process Costing
Student: ___________________________________________________________________________
1. A process is a series of activities or operations, which are linked to perform a specific objective.
True False 2. The cost flows for a process-costing system are totally different from those of a job order costing system.
True False 3. Process systems are characterized by a larger number of homogeneous products passing through a series of processes.
True False 4. The production report is the document that summarizes the manufacturing activity that takes place in a work-in-process department.
True False 5. Many service organizations and just-in-time (JIT) manufacturing firms operate in an environment without work-in-process inventories.
True False 6. Services that are basically homogeneous and repetitive cannot take advantage of a process-costing approach.
True False 7. In JIT manufacturing, work cells are created that produce a product from start to finish.
True False 8. In firms with ending work-in-process inventories, output is measured using equivalent units.
True False 9. Equivalent units are the incomplete units that could have been produced given the total amount of effort expended.
True False 10. In a process-costing system, work-in-process inventory, materials are added uniformly so that multiple calculations of equivalent units are needed for each type of input.
True False 11. The FIFO costing method recognizes that the work and costs carried over from the prior period legitimately belong to that period.
True False 12. FIFO follows the job-order costing principle.
True False 13. The FIFO method unit costs are used to value output that is related to future periods.
True False 14. The weighted average method treats the equivalent output and costs in beginning work-in-process inventories as if they belong to the current period
Student: ___________________________________________________________________________
1. A process is a series of activities or operations, which are linked to perform a specific objective.
True False 2. The cost flows for a process-costing system are totally different from those of a job order costing system.
True False 3. Process systems are characterized by a larger number of homogeneous products passing through a series of processes.
True False 4. The production report is the document that summarizes the manufacturing activity that takes place in a work-in-process department.
True False 5. Many service organizations and just-in-time (JIT) manufacturing firms operate in an environment without work-in-process inventories.
True False 6. Services that are basically homogeneous and repetitive cannot take advantage of a process-costing approach.
True False 7. In JIT manufacturing, work cells are created that produce a product from start to finish.
True False 8. In firms with ending work-in-process inventories, output is measured using equivalent units.
True False 9. Equivalent units are the incomplete units that could have been produced given the total amount of effort expended.
True False 10. In a process-costing system, work-in-process inventory, materials are added uniformly so that multiple calculations of equivalent units are needed for each type of input.
True False 11. The FIFO costing method recognizes that the work and costs carried over from the prior period legitimately belong to that period.
True False 12. FIFO follows the job-order costing principle.
True False 13. The FIFO method unit costs are used to value output that is related to future periods.
True False 14. The weighted average method treats the equivalent output and costs in beginning work-in-process inventories as if they belong to the current period