6. True or False: When two processes are needed, the cost of finished units in Process #1 is transferred to Process #2 by debiting the Work-in-Process Inventory #1 account and crediting the Work-in-Process Inventory #2 account. 7. True or False: At the end of the accounting period, the total of all job cost sheets related to unfinished jobs will equal the ending balance in the Work-in-Process Inventory account. 8. True or False: Under process costing, the manager for Process #4 (in a multi-process production operation) cannot control the amount of Transferred-In Costs assigned to him/her from earlier processes, but it still held responsible for those costs, and they will be part of the Cost of Production Report for Process #4.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
6. True or False: When two processes are needed, the cost of finished units in Process #1 is transferred to Process #2 by debiting the Work-in-Process Inventory #1 account and crediting the Work-in-Process Inventory #2 account.
7. True or False: At the end of the accounting period, the total of all
8. True or False: Under
9. True or False: When a job has been completed, all of the costs assigned on the job's job cost sheet are moved to the Finished Goods Inventory account.
10. True or False: It is difficult to trace costs to individual products in a continuous flow manufacturing process.
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