Chapter 4Managerial Accounting 226 Process Costing True/False Questions 1 1. When materials are purchased in a process costing system, a materials acoount is debited with the cost of the materials True Fase 3. The following journal entry would be made in a processing costing system when units that have been completed with respect to the work done in Processing Department Z are transferred from Processing Department Z to Processing Department Y Work in Process, Departmentz Work in Process, Department Y True (F In order to equitably allocate costs in a process costing system, dissimilar products are restated in terms of equivalent units by weighting the number of units produced by their market values. 5. True False 7. In calculating cost per equivalent unit under the weighted-average method, prior period costs are not combined with current period costs. True False 9. Using process costing, it is necessary to consider the stage of completion of the units when assigning conversion cost to partially completed units in the ending work in process inventory True False 15. A job-orde r cost system would be used to account for the cost of bulding an oil tanker True False 17 Both job-order and process costing systems use averaging to compute unit product costs True False 19. Which of the following journal entries would be used to record application of manufacturing overhead to work in process in a process costing system with two processing departments department A and department B? xXX A)) Manufacturing Overhead XxX Work in Process Department A Work in Process..Department 8 B) Work in Process DepartmentA Xxx Work in ProcessDepartment B XXX Manufacturing Overhead C) Work in Process Department XXx Work in Process Department A Manufacturing Overhead Work in Process.DepartmentA XXX D) Work in Process- Department B Xxx Manufacturing Overhead A Option A B. Option B C. Option C D. Option D 21. Barraza Corporation uses a weighted-average process cosing system Barraza has materials. One of these materials is added at the beginning of the production material is added when processing is 50% complete when wo re for these two materials be equal? process. The other the equivalent units of production Awhen processing on begrning work in process is less than 50% complete at the start of the period B. when processing on beginning work in process is more than 50% complete at the start ofthe period C. when processing on ending work in process is over 50% complete. D, when processing on ending work in process is less than 50% complete. 23. Which of the following are needed to compute the cost per equivalent unit for materials under the woighted-average method of process costng? Material cost assigned Matenal cost added to to beginning work in production dunng the process last period Yes No Yes No current period Yes Yes No No A) B) C) 0) A Option A B. Option B C. Option C D. Option D 30. Fabian Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 9,000 units in its beginning work in process inventory that were 70% complete with respect to conversion costs. An additional 90,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. During the month 87,000 units were completed In the Assembly t and transferred to the next processing department. There were 12,000 units in the ending work in process inventory of the Assembly Department that were respect to conversion costs What 20% complete with t were the equivalent units for conversion costs in the Assembly Department for the month? A 93,000 B. 83,100 C. 87,000 D. 89.400