4. Mr Khizar has prepared the following list ofstatements about process cost accounting.а.1. Process cost systems are used to applycoststosimilarproductsthataremass-produced in a continuous fashion.b. 2. A process cost system is used when eachfinished unit is indistinguishable fromanother.3. Companies that produce soft drinks,motion pictures, and computer chips wouldall use process cost accounting.С.d. 4. In a process cost system, costs are trackedby individual jobs.5. Job order costing and process costingе.track different manufacturing cost elements.f. 6. Both job order costing and processcosting account for direct materials, directlabor, and manufacturing overhead.Instructions:Identify each statement as true or false. If false,indicate how to correct the statement.

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Description: 4. Mr Khizar has prepared the following list ofstatements about process cost accounting.а.1. Process cost systems are used to applycoststosimilarproductsthataremass-produced in a continuous fashion.b. 2. A process cost system is used when eachfinish

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4. Mr Khizar has prepared the following list of statements about process cost accounting. 1. Process cost systems are used to apply similar products that а. costs to are mass-produced in a continuous fashion. b. 2. A process cost system is used when each finished unit is indistinguishable from another. c. 3. Companies that produce soft drinks, motion pictures, and computer chips would С. all use process cost accounting.

4. Mr Khizar has prepared the following list of statements about process cost accounting. 1. Process cost systems are used to apply similar products that а. costs to are mass-produced in a continuous fashion. b. 2. A process cost system is used when each finished unit is indistinguishable from another. c. 3. Companies that produce soft drinks, motion pictures, and computer chips would С. all use process cost accounting.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Wojtek Nakowski has prepared the following list of statements about process cost accounting. Identify each statement as true or false. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Process cost systems are used to apply costs to similar products that are mass-produced in a continuous fashion. A process cost system is used when each finished unit is indistinguishable from another. Companies that produce soft drinks, motion pictures, and computer chips would all use process cost accounting. In a process cost system, costs are tracked by individual jobs. Job-order costing and process costing track different manufacturing cost components. Both job-order costing and process costing account for direct materials, direct labour, and manufacturing overhead. Costs flow through the accounts in the same basic way for both job-order costing and process costing. In a process cost system, only one work in process inventory account is used. In a process cost system, costs are summarized in a job cost sheet. In a…
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