Exam 12: Job-Order, Process, and Hybrid Costing Systems

In a job-order cost system, each department has a work in process account.

Indicate whether each of the following statements about job-order cost systems is true or false.A company using a job-order cost system assigns an identification number to each job or batch of products.With a job-order cost system, costs for all jobs worked on during a period are accumulated together and then allocated to individual jobs.Job-order costing systems involve some averaging in the calculation of the costs of products.In a job-order cost system, the Work in Process Inventory account is a temporary account.In a job-order cost system, each job cost sheet includes direct material, direct labor, and manufacturing overhead cost.

Indicate whether each of the following statements about process costing systems is true or false.A company that uses a process costing system may use separate predetermined overhead rates for each department involved in production.Company X completed 10,000 units of a product in January and had 1,000 units (80% completed) at the end of the month. Company X's equivalent whole units for January were 10,800.The reason for calculating the number of equivalent whole units for a period is to allocate product costs between work in process inventory and the cost of units completed and transferred out.A company that uses a process costing system completes a job cost sheet for each department each month.The transfer of goods from one processing department to another is an asset use transaction.

The source document used to record the amount of time worked by an employee on a job is called the:

Which of the following is incorrect regarding a job-order cost system?

The entry to record cost of selling a particular job in a job-order costing system would include a:

Which of the following items is provided on a work ticket?