Module 2 Exercises
Module 2 Exercises
Problem 1:
1. Process cost systems are used to apply costs to similar products that are mass-produced in a continuous fashion.
ANSWER = TRUE
2. A process cost system is used when each finished unit is indistinguishable from another.
ANSWER = TRUE
3. Companies that produce soft drinks, motion pictures, and computers chips would all use process cost accounting.
ANSWER = FALSE
-Companies that produce soft drinks and computer chips would all use process cost accounting.
4. In a process cost system, costs are tracked by individual jobs.
ANSWER = FALSE
-In a job order cost system, costs are tracked by individual jobs.
5. Job order costing and process costing track different manufacturing costs elements.
ANSWER = FALSE
-They track the same 3 cost manufacturing cost elements
6. Both job order costing and process costing account for direct materials, direct labor, and manufacturing overhead.
ANSWER = TRUE
7. Costs flow through the accounts in the same basic way for both job order costing and process costing.
ANSWER = TRUE
8. In a process cost system, only one work in process account is used.
ANSWER = FALSE
- In a process cost system, multiple work in process accounts are used. 9. In a process cost system, costs are summarized in a job cost sheet.
ANSWER = FALSE
-In a process cost system, costs are summarized in a production cost report for each department.
10. In a process cost system, the unit cost is total manufacturing costs for the period divided by the units produced during the period.
ANSWER = TRUE
Problem 2: Value-Added Activities | Hours | Writing contracts and letters | 1 | Taking depositions | 1 | Contemplating legal strategy | 1 | Litigating a case in court | 2.5 | | 5.5 |
Non-Value-Added Activities | Hours | Attending staff meetings | 0.5 | Doing research | 1 | Traveling to/from court | 1 | Eating lunch | 1 | Entertaining a prospective client | 2 |
Problem 1:
1. Process cost systems are used to apply costs to similar products that are mass-produced in a continuous fashion.
ANSWER = TRUE
2. A process cost system is used when each finished unit is indistinguishable from another.
ANSWER = TRUE
3. Companies that produce soft drinks, motion pictures, and computers chips would all use process cost accounting.
ANSWER = FALSE
-Companies that produce soft drinks and computer chips would all use process cost accounting.
4. In a process cost system, costs are tracked by individual jobs.
ANSWER = FALSE
-In a job order cost system, costs are tracked by individual jobs.
5. Job order costing and process costing track different manufacturing costs elements.
ANSWER = FALSE
-They track the same 3 cost manufacturing cost elements
6. Both job order costing and process costing account for direct materials, direct labor, and manufacturing overhead.
ANSWER = TRUE
7. Costs flow through the accounts in the same basic way for both job order costing and process costing.
ANSWER = TRUE
8. In a process cost system, only one work in process account is used.
ANSWER = FALSE
- In a process cost system, multiple work in process accounts are used. 9. In a process cost system, costs are summarized in a job cost sheet.
ANSWER = FALSE
-In a process cost system, costs are summarized in a production cost report for each department.
10. In a process cost system, the unit cost is total manufacturing costs for the period divided by the units produced during the period.
ANSWER = TRUE
Problem 2: Value-Added Activities | Hours | Writing contracts and letters | 1 | Taking depositions | 1 | Contemplating legal strategy | 1 | Litigating a case in court | 2.5 | | 5.5 |
Non-Value-Added Activities | Hours | Attending staff meetings | 0.5 | Doing research | 1 | Traveling to/from court | 1 | Eating lunch | 1 | Entertaining a prospective client | 2 |