part 1 true or false

24. A job order cost accounting system provides for a separate record of the cost of each particular quantity of product that passes through the factory. 25. Managerial accounting information includes both historical and estimated data. 26. In a process costing system, the cost per equivalent unit is computed before computing equivalent units. 27. A cost object indicates how costs are related or identified. 28. If 10,000 units that were 50% completed are in process at November 1, 90,000 units were completed during November, and 20,000 were 20% completed at November 30, the number of equivalent units of production for November was 90,000. (Assume no loss of units in production and that inventories are costed by the first-in, first-out method.) 29. A report analyzing the dollar savings of purchasing new equipment to speed up the production process is a managerial accounting report. 30. In a process costing system, a separate work in process inventory account is maintained for each customer's job 31. In the job order costing system, the finished goods account is the controlling account for the factory overhead ledger. 32. Custom-made goods would be accounted for using a process costing system. 33. The journal entry to transfer goods in process from Department X to Department Y includes a debit to Work in Process-Department X. 34. Interim financial statements for a manufacturing business would report overapplied factory overhead as a deferred item on the balance sheet. 35. When production departments differ significantly in their manufacturing processes, it is recommended that the single plantwide factory overhead rate be used for allocating factory overhead. 36. Industries that typically use process cost systems include chemicals, oil, metals, food, paper, and pharmaceuticals. Page 2 | 12 Please use answer sheet provided! Midterm Exam-MGT3110 MAKE SURE YOU READ EVERY QUESTION CAREFULLY BEFORE ANSWERING. 37. A process cost accounting system records all actual factory overhead costs directly in the work in process account. 38. In a process costing system, each process will have a work in process inventory account. 39. Conversion and direct materials are generally both added at the end of the production process. 40. A receiving report is prepared when purchased materials are first received by the manufacturing department. Indicate the answer choice that best completes the statement or answers the question. 41. In order to be useful to managers, managerial accounting reports should possess all of the following characteristics except a. provides objective measures of past operations and subjective estimates about future decisions b. be prepared in accordance with generally accepted accounting principles c. be provided at any time management needs information d. be prepared to report information for any unit of the business to support decision making