Name TRUE/FALSE 1. In a process cost system, product costs are accumulated by processing department rather than by job 2. If factory overhead applied exceeds the actual costs, then factory overhead is said to be underapplied. 3. A manufacturer may employ a job order cost system for some of its products and a process cost system for others. 4. Period costs can be found on the balance sheet or on the income statement. 5. Managerial accounting reports are always prepared according to generally accepted accounting principles (GAAP) Direct labor cost is an example of a period cost. A manufacturing business reports just two types of inventory on its 6. balance sheet: work-in-process inventory and finished goods inventory Job order cost accounting systems can be used only for companies that manufacture a product. The cost of a manufactured product generally consists of direct material cort dirert laber cost, and factory overhead cost 4. Period costs can be found on the balance sheet or on the income statement. 5. Managerial accounting reports are always prepared according to generally accepted accounting principles (GAAP). Direct labor cost is an example of a period cost. A manufacturing business reports just two types of inventory on its 6. 7. balance sheet: work-in-process inventory and finished goods inventory 8. manufacture a product. The cost of a manufactured product generally consists of direct materials cost, direct labor cost, and factory overhead cost. 9. Industries that typically use process cost systems include chemicals, oil, metals, food, paper, and pharmaceuticals. 10. Companies recognizing the need to simultaneously produce products w high quality, low cost, and instant availability have adopted a just-in-t processing philosophy. Equivalent units of production are the number of units that could ha been manufactured from start to finish during an accounting period ate TRUEFALSE In a process cost system, product cs are department rather than by jo 2 If factory y overhead applied exceeds the tual cen tosory is said to be underapplied A manufacturer may employ a job order cost system o sne ot s Period costs can be found on the balance sheet or on thee tteme Managerial accounting reports are always prepared according to wenerally 5 accepted accounting principles (GAAP Direct labor cost is an example of a period cost A manufacturing business reports just two types of inventory on its 6, 7. balance sheet: work-in-process inventory and finished goods inventory S. Job order cost accounting systems can be used only for companies that manufacture a product 9. The cost of a manufactured product generally consists of direct materials cost, direct labor cost, and factory overhead cost. Industries that typically use process cost systems include chemicals, oil, metals, food, paper, and pharmaceuticals. 10. Companies recognizing the need to simultaneously produce products with high quality, low cost, and instant availability have adopted a just-in-time processing philosophy Equivalent units of production are the number of units that could have been manufactured from start to finish during an accounting period. The cost of production report reports the cost charged to production the costs allocated to finished goods and work-in-process. and