True or False? T or F A process manufacturer produces products that areindistinguishable from each other using a continuous production process. T or F Three categories of units are recorded on the Cost of Production report –whole units, equivalent units for direct materials, and equivalent units for conversion costs. T or F Whole units arethe total number of units handled in the department.
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.
True or False?
T or F
A process manufacturer produces products that areindistinguishable from each other using a continuous production process.
T or F
Three categories of units are recorded on the Cost of Production report –whole units, equivalent units for direct materials, and equivalent units for conversion costs.
T or F
Whole units arethe total number of units handled in the department.
T or F
Conversion cost per equivalent unit equals total conversion costs for the period divided by total equivalent units of conversion costs.
T or F
Product costs must be allocated to the units transferred out of thedepartment and the partially completed units on hand at the end of the period.
T or F
Ford is a process manufacturer.
T or F
The cost of factory overhead incurred for indirect materials and other factory overhead is recorded in the direct labor account for each department.
T or F
Pepsi-Colais a job order manufacturer.
T or F
Direct materials are assumed to be added in each department.
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