$202403\_$Intro Managerial

Accounting$\_$ACCY$\_2002\_10$

Which of the following statements about a process costing system is incorrect?

In a process costing system, cost of goods manufactured can only be computed from the last work$-$in$-$process account in the

production process

In a process costing system, by definition equivalent units of production include the equivalent units in the beginning work$-$in$-$

process inventory

In a process costing system, materials costs are initially traced to each departmental work$-$in$-$process account

In a process costing system, applied overhead is computed by multiplying the predetermined overhead rate and the allocation base

used in a department's work$-$in$-$process