Question
True or False Enter a T or an F in the blank to indicate whether the statement is true or false. ___ 1. A utility
True or False
Enter a T or an F in the blank to indicate whether the
statement is true or false.
___ 1. A utility such as a water company would
typically use a process costing system.
___ 2. Under process costing it is important to
identify the materials, labor, and overhead costs asso-
ciated with a particular customers order just as under
job-order costing.
___ 3. In a process costing system, the production
report replaces the job cost sheet.
___ 4. Costing is more difficult in a process cost-
ing system than in a job-order costing system.
___ 5. In a process costing system, a work in
process account is maintained for each processing de-
partment.
___ 6. Since costs are accumulated by department
in a process costing system, there is no need for a fi-
nished goods inventory account.
___ 7. In process costing, costs incurred in a de-
partment are not transferred to the next department.
___ 8. If beginning work in process inventory
contains 500 units that are 60% complete, then the in-
ventory contains 300 equivalent units.
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