9. Companies that use a process-cost accounting system would: a. pass completed production directly to Cost of Goods Sold. b. establish a separate Finished-Goods Inventory account for each manufacturing department. c. charge goods produced with actual overhead amounts rather than applied overhead amounts. d. establish a separate Work-in-Process Inventory account for each manufacturing department.

9. Companies that use a process-cost accounting system would: a. pass completed production directly to Cost of Goods Sold. b. establish a separate Finished-Goods Inventory account for each manufacturing department. c. charge goods produced with actual overhead amounts rather than applied overhead amounts. d. establish a separate Work-in-Process Inventory account for each manufacturing department.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 17MC: Assigning indirect costs to departments is completed by __________________________. applying the...

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Similar questions

During production, how are the costs in process costing accumulated? A. to cost of goods sold B. to each individual product C. to manufacturing overhead D. to each individual department
Assigning indirect costs to departments is completed by __________________________. applying the predetermined overhead rate debiting the manufacturing costs incurred applying the costs to manufacturing overhead applying the costs to work in process inventory
Which is nor needed to compute equivalent units of production? A. the percentage of completion for inventory still in process B. the number of units transferred out C. the number of units started and completed D. the material cost per unit
A. Name two principal types of cost accounting systems. B. Which system provides for a separate record of each particular quantity of product that passes through the factory? C. Which system accumulates the costs for each department or process within the factory?
In a process costing system, which account shows the overhead assigned to the department? A. cost of goods sold B. finished goods inventory C. raw material inventory D. work in process inventory
In a job order cost system, indirect labor incurred is debited to which account? A. work in process inventory B. finished goods inventory C. manufacturing overhead D. cost of goods sold
In a process cost system, factory depreciation expense incurred is debited to _____________________. finished goods inventory work in process inventory manufacturing overhead cost of goods sold
Why do lean manufacturers use a raw and in process inventory account, rather than separately reporting materials and work in process?
Assigning indirect costs to specific jobs is completed by which of the following? applying the costs to manufacturing overhead using the predetermined overhead rate using the manufacturing costs incurred applying the indirect labor to the work in process inventory
Accumulating costs means that a. costs must be summed and entered on the income statement. b. each cost must be linked to some cost object. c. costs must be measured and tracked. d. costs must be allocated to units of production. e. costs have expired and must be transferred from the balance sheet to the income statement.
Why are the overhead costs first accumulated in the manufacturing overhead account instead of in the work in process inventory account?
Which of the following product situations is better suited to job order costing than to process costing? A. Each product batch is exactly the same as the prior batch. B. The costs are easily traced to a specific product. C. Costs are accumulated by department. D. The value of work in process is based on assigning standard costs.