1.In a process costing system, the entry to record cost of materials assigned to a production department requires a debit to the Raw Materials Inventory account and a credit to the Work in Process Inventory account for that department.

True

False

2.The FIFO method of computing equivalent units includes the beginning inventory costs in computing the cost per equivalent unit for the current period.

True

False

3.If a production department has 100 equivalent units of production with respect to direct materials in a given reporting period, the equivalent units of production with respect to direct labor also must be 100.

True

False

4.The process cost summary is an important managerial accounting report produced by a process costing system.

True

False

5.A production department is an organizational unit that has the responsibility for the complete processing of one particular product.

True

False

6.Process costing is applied to operations with repetitive production and customized products.

True

False

7.Conversion cost per equivalent unit is the combined cost of direct labor and factory overhead per equivalent unit.

True

False

8.In some circumstances, a process costing system can classify wages paid to maintenance workers as direct labor costs instead of factory overhead.

True

False

9.Equivalent units of production are equal to:

The number of units still in process at the end of a period.

The number of units that could have been started and completed given the costs incurred during the period.

The number of finished units actually produced during a period.

Physical units that were started and completed during a period.

The number of units started into the process during a period.

10.Dazzle, Inc. produces beads for jewelry making use. The following information summarizes production operations and sales activities for June. The journal entry to record June sales is:

Direct materials used	$87,000
Direct labor used	160,000
Predetermined overhead rate (based on direct labor)	155%
Goods transferred to finished goods	432,000
Cost of goods sold	444,000
Credit sales	810,000

Debit Accounts Receivable $810,000; credit Sales $366,000; credit Finished Goods Inventory $444,000.

Debit Accounts Receivable $810,000; credit Cost of Goods Sold $810,000.

Debit Finished Goods Inventory $444,000; debit Sales $810,000; credit Accounts Receivable $810,000; credit Cost of Goods Sold $444,000.

Debit Cost of Goods Sold $444,000; credit Sales $444,000.

Debit Accounts Receivable $810,000; credit Sales $810,000; debit Cost of Goods Sold $444,000; credit Finished Goods Inventory $444,000.