true/ false mangment cost accounting

Chapter 18 1. 1 The primary difference between job costing and process costing is the extent of averaging used to compute unit costs of products or services. Equivalent units measure output in terms of the physical quantities of each of the inputs (factors of production) that have been consumed by the units. Process costing is extremely useful when there are a variety of products produced, as compared to the production of a single product. Process-costing systems separate costs into cost categories according to the timing of when costs are introduced into the process. Process-costing journal entries and job-costing joumal entries are similar except for the multiple work-in-process accounts in the job-costing system. The final result of the process costing procedure is to compute the dollar amount of the credit to a work-in-process account and the corresponding debit to finished goods and/or other work-in-process accounts. The weighted-average process costing method assigns the cost of the earliest equivalent units available to units completed and transferred out, and the cost of the most recent equivalent units worked on during the period to ending work-inprocess inventory. A distinctive feature of the FHFO process costing method is that the work done on beginning inventory before the current period is averaged with work done in the. current period. The first-in, first-out (FIFO) process costing method assigns the cost of the previous accounting period's equivalent units in beginning work-in-process inventory to the first units completed and transferred out of the process. 1