Indicate Whether Each of the Following Statements About Process Costing

Short Answer

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.