1) In process costing, the cost object is the process or department, and in job order costing, the cost object is a job.

TRUE OR FALSE

2) In a process costing system, the purchase of raw materials on account is credited to Accounts Payable.

TRUE OR FALSE

3) A materials consumption report is used instead of materials requisitions in companies where materials move continuously through the manufacturing process.

TRUE OR FALSE

4) Process costing systems use a single Work in Process Inventory account regardless of the number of production departments that exist.

TRUE OR FALSE

5) A soda manufacturer estimates total factory overhead costs of $12,950,000 and total direct materials costs of $7,000,000 for its first year of operations. The companys predetermined overhead rate as a percentage of direct materials costs is 185%

TRUE OR FALSE

6) In process costing, all indirect materials are charged directly to Work in Process Inventory.

TRUE OR FALSE

7) If a department that applies process costing starts the reporting period with 40,000 physical units that were 80% complete with respect to direct materials and 50% complete with respect to direct labor, it must add 8,000 equivalent units of direct materials and 20,000 equivalent units of direct labor to complete them.

TRUE OR FALSE

8) Since the production cost report using the weighted-average method describes the activities of a production department for a specified reporting period, it does not present information about any costs incurred in prior periods.

TRUE OR FALSE

9) Which of the following products is least likely to be produced in a process operation?

Smartphones

Slacks for casual wear

Hammers

Calculators

Custom cabinets

10) In a process costing system, direct material costs incurred are recorded:

Indirectly to a Work in Process Inventory account from Factory Overhead.

Indirectly to a Finished Goods Inventory account from Factory Overhead.

Directly to a Work in Process Inventory account.

Directly to a Finished Goods Inventory account.

Directly to a Cost of Goods Sold account.