TRue/FAlse

32. When raw materials are purchased the raw materials inventory account is credited. 33. Actual overhead is debited to the overhead control account. 34. The journal entry to record overhead allocated is debit Work in Process and credit Overhead Control 35. The amount of under or over applied overhead must be removed with an adjusting entry at the end of the accounting period. 36. If the amount of over or under applied overhead is material it should be allocated on a pro rata basis to work in process, finished goods and raw materials. 7. Over applied overhead is always material and should be treated accordingly. 38. The accounting method for assigning production costs to mass produced products is process costing. 39. Process costing assigns costs to cost pools and allocates the costs to individual units in a two stage process. 63. The way the spoilage cost is treated in the accounting records depends on whether the spoilage is considered normal or abnormal. 64. The cost of a partially complete spoiled unit is treated as though the unit had been completed 65. Normal spoilage consists of defective units that arise as part of regular operations 66. In a process costing system, the cost of normal spoilage is allocated to all units produced as part of overhead 61. Spoilage refers to product that is unacceptable and is discarded, reworked or sold at a reduced price. 26. In normal costing overhead is allocated using the estimated allocation rate multiplied by the actual quantity of allocation base. 30. The overhead control account records the actual overhead costs incurred and the overhead costs allocated. 20. An allocation base is chosen for each department in job costing. 6. An architect is a business which is likely to use job costing