True False

Cross-training is one benefit of the just-in-time processing system. True or False

When materials are purchased, the materials account is debited. True or False

When materials are requisitioned from the storeroom, work in process is debited. True or False

Indirect materials is an example of factory overhead. True

In the just-in-time system, the product is often placed on a movable carrier that is centrally located in the work center. True

When using the process costing method there is only one work in process account for the item that is manufactured. True or False

The just-in-time processing method is a type of traditional production method. True or False

The use of the Just in time system reduces the amount of labor costs for a company. True or False

Multiple Choice

_________________ is primarily used for bulk items that are indistinguishable.

Job Order Costing

Process Order Costing

Financial Accounting

None of the above

All of the following are benefits of just in time processing EXCEPT:

Increase in efficiency

Eliminates Poor Quality

Has the potential to overwork employees

All of the above are benefits

The ___________________ emphasizes continually improving the manufacturing process and product quality.

Job Order Cost System

Process Cost System

Just-in-time system

None of the above

Activities supporting the manufacturing process are called______________.

Service activities

Manufacturing Cell Activities

Work Center Activities

None of the Above

Exercises/Other

Alice Farms purchased materials milk, sugar, cream, and packaging items on account for $5,550. Using the process cost system, answer the following questions.

What account should be debited to record the receipt of these items?

___________________________________

What account should be credited to record the receipt of these items?

___________________________________

The Mixing Department requisitioned milk, cream, and sugar totaling $9,658. Using the process cost system, answer the following questions.

What account should be debited to record the receipt of these items?

___________________________________

What account should be credited to record the receipt of these items?

___________________________________

A company purchased raw materials totaling $35,000. Answer the following questions using the process cost method.

Which account would the company debit? ____________________

Which account would the company credit? ____________________

A sewing department requisitions $4,000 of buttons and $3,250 of thread from the storeroom. Record the journal entry for this transaction.