Process Costing Quiz 3

[TRUE OR FALSE] In a process costing system, the costs of one processing department become part of the costs of the next processing department.

[TRUE OR FALSE] The equivalent units of production will be the same under the weighted-average and the FIFO method if there is no beginning work in process inventory.

[TRUE OR FALSE] Under the weighted-average method, the equivalent units used to compute the unit costs of ending inventories relate only to work done during the current period.

[TRUE OR FALSE] In order to equitably allocate costs in a process costing system, dissimilar products are restated in terms of equivalent units by weighting the number of units produced by their market values.

[TRUE OR FALSE] Process costing is used where many different products are produced each period to customer specifications.

[TRUE OR FALSE] Under a weighted-average process costing system when all materials are added at the beginning of the production process, the equivalent units for materials is equal to the units completed and transferred out.

[TRUE OR FALSE] In calculating cost per equivalent unit under the weighted-average method, prior period costs are combined with current period costs.

[TRUE OR FALSE] The equivalent units of production for a department using the FIFO process costing method is equal to the number of units completed plus the equivalent units in the ending inventory.

[TRUE OR FALSE] The units in beginning work in process inventory plus the units started into production must equal the units transferred out of the department plus the units in ending work in process inventory.

[TRUE OR FALSE] In a process costing system, direct labor cost combined with manufacturing overhead cost is known as conversion cost.