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.

Name: 4. Mr Khizar has prepared the following list ofstatements about proce
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
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

Hi student Since there are multiple subparts, we will answer only first three subparts.

Business

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.

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

See similar textbooks

Similar questions

Nobel Ltd adopts process costing rather than job costing. Which of the following statement could explain why? a. Nobel Ltd produces units according to customer specifications. b. Nobel Ltd wants to track the cost of material, labour and overhead to specific customers. c. Nobel Ltd wants to assign overhead using machine hours as the allocation base. d. Nobel Ltd manufactures virtually identical products using a series of continuous processes.
8. I Process Costing is used to calculate a products manufacturing cost in: B. product. DA most industries. industries that have a continuous production process of the same the construction industry. a industry that can uniquely identify the product. I □
3 2. An intern suggested that the company use activity-based costing to cost its products. A team was formed to investigate this idea, and it came back with the recommendation that four activity cost pools be used. These cost pools and their associated activities follow: 5 ints 00:40:40 Activity Cost Pool and Activity Measure Purchase orders (number of orders) Rework requests (number of requests) Product testing (number of tests) Machine related (machine-hours) Activity Cost Pool Purchase orders Rework requests Product testing Machine related Estimated Overhead Cost $ 170,000 374,400 350,000 1,150,000 $2,044,400 Compute the activity rate (i.e., predetermined overhead rate) for each of the activity cost pools. Activity Rate per order per request per test per MH Deluxe 1,000 600 5,000 18,000 Activity Regular 1,500 1,200 12,500 28,000 Total 2,500 1,800 17,500 46,000 3. Assume that actual activity is as expected for the year. Using activity-based costing, do the following: a. Determine the…
f) ‘Process costing is a term used in cost accounting to describe one method for collecting and assigning manufacturing costs to the units produced.’ There are some statements about the process costing: An abnormal loss occurs when expected output exceeds actual output. The scrap value of an abnormal loss is credited to the process account. The allocated cost of an abnormal gain is credited to the process account. The inputs to a process less the normal loss is the expected output. The normal loss in a process is allocated a cost in order to reconcile the costs of inputs and outputs. The FIFO method assumes opening WIP is the first group of units to be completed. Therefore, opening WIP is charged separately to completed production and CPU is based on current period costs. Required: Please identify which of the above statements are false and explain the reasons.
Which of the following is NOT true about a resource cost driver under Activity based costing? O a. Sales orders are used to assign the cost of machines O b. Resource cost driver is used to assign the cost of the resource to an activity OC. Number of purchased orders placed will determine the cost of purchasing the materials O d. Number of times machines are set up will determine their cost of setting up
Please help me to solve this problem
‘Process costing is a term used in cost accounting to describe one method for collecting and assigning manufacturing costs to the units produced.’ There are some statements about the process costing: An abnormal loss occurs when the expected output exceeds actual output. The scrap value of an abnormal loss is credited to the process account. The allocated cost of an abnormal gain is credited to the process account. The inputs to a process less than the normal loss are the expected output. The normal loss in a process is allocated a cost in order to reconcile the costs of inputs and outputs. The FIFO method assumes opening WIP is the first group of units to be completed. Therefore, opening WIP is charged separately to completed production, and CPU is based on current period costs. Required: Please identify which of the above statements are false and explain the reasons.
Please do not give solution in image format thanku
Activity-based costing can be beneficial in allocating selling and administrative expenses to various products for managerial decision making. Which of the following would be the best allocation base for help desk costs? a. number of sales employees Ob. number of products sold c. number of calls Od. square footage of the help desk office
Please explain the statement below thoroughly with examples. (Ture or False) "In activity-based costing, the manufacturing overhead cost per unit will depend partially on the number of units in a batch."
Process costing is normally used when: Select one: a. large numbers of different products are manufactured. O b. the fixed costs of manufacturing exceed the variable cost of manufacturing. O c. large numbers of nearly identical products are manufactured. O d. small numbers of nearly identical products are manufactured.