Mock exam $2$

TRUE$/$FALSE $-$ Write $\text{'}T\text{'}$ if the statement is true and $\text{'}F\text{'}$ if the statement is false.

In a process costing system, costs are traced directly to jobs.

$$ true

$$ false

When materials are purchased in a process costing system, a work in process account is

debited with the cost of the materials.

$o.$ true

$$ false

In a process costing system, overhead is allocated to departments after being applied to units

of product.

$o.$ true

$$ false

In a process costing system, manufacturing overhead cost is also called conversion cost.

$o.$ true

$$ false

The units in beginning work in process inventory plus the units started into production must

equal the units transferred out of the department plus the units in ending work in process

inventory.

$o.$ true

$$ false

The equivalent units in beginning work in process inventory plus the equivalent units in

ending work in process inventory equals the units transferred out plus the equivalent units for

the work done during the period.

$o.$ true

$$ false

When all materials are added at the beginning of the production process, under a weighted$-$

average process costing system the equivalent units for materials is equal to the units

completed and transferred out.

$o.$ true

$$ false

Job$-$order costing would be more likely to be used than process costing in situations where

many different products or services are produced each period to customer specifications.

$o.$ true

$$ false