Exam 21: Costing Systems Process Costing

Under the average costing method in process costing system, the costs in beginning inventory are combined with current period costs to compute an average product unit cost.

Use the following data from a company using a process costing system to answer the question below. The company uses average process costing method. Equivalent units for conversion costs during the month totaled

The FIFO process costing method assumes that the items in ending work in process inventory were started and completed during the current period.

In a process costing system, all production costs are assigned to departments.

Which of the following cost flow assumptions most closely follows the logical product flow in a process costing environment?

Which of the following is not a characteristic of a process costing system?

The use of the FIFO method would result in a company's process cost report showing

Data for Orlando Company for the month of June 20xx are as follows: Assume the company uses a FIFO flow of costs. a. Prepare a process cost report for June. b. Identify the amount that should be transferred out of the Work in Process Inventory account, and state where those dollars should be transferred.

The number of equivalent units of production may be larger than the number of completed units during the period.

In a process costing system, product costs are traced to individual products.

Direct materials for 8,000 units were added at the beginning of the second process during November. During the month, 8,300 units were completed and transferred to the third process. On November 1, there were 600 units in beginning inventory, and on November 30, there were 300 units still remaining in the process. Compute the equivalent units for direct materials for the second process for November using the FIFO costing method.

The number of possible combinations of product flows and production processes is limitless.

The FIFO costing method is a costing method in which the cost flow follows the logical product flow.

In a process costing system, some of the increases to Department B's Work in Process Inventory account would come from Department A's

Under the average process costing method, both the direct materials costs and the conversion costs of beginning inventory as if they were incurred in the current period.

Separate equivalent units of production usually are calculated for materials and conversion costs.

A process costing system is used by companies that manufacture large amounts of similar products or liquid products.

The basis used in computing unit cost for the process costing system is made up of certain specific jobs worked on during the fiscal year.

Managers track product and cost flows of the entire organization and prepare process cost reports to assign production costs to the products manufactured.

Use the following data from a company using a process costing system to answer the question(s) below. The FIFO process costing method is used by the company. Units completed and transferred out of the department during the month totaled