In a process costing system, costs are tracked through a series of connected manufacturing processes or departments, rather than by individual jobs.

Separate work in process inventory accounts are maintained for each production department or manufacturing process in a process costing system.

In a process costing system, materials, labour and overhead costs are only added in the first production department.

The assignment of the three manufacturing cost elements to Work in Process in a process costing system is the same as in a job-order costing system.

Equivalent units of production are used to determine the cost per unit of completed products.

Equivalent units of production measure the work done during a period, expressed in fully completed units.

Equivalent units of production is the sum of units completed and transferred out plus equivalent units of beginning work in process.

The weighted-average method of computing equivalent units is the most widely used method in practice.

There are no units in process at the beginning of the period, 1,500 units in process at the end of the period that are 40% complete, and 15,000 units transferred out during the period. Based on this information, there were 14,400 equivalent units of production during the period.

The first step performed in preparing a production cost report is computing the equivalent units of production.

Equivalent units of production must be calculated before the unit production costs can be computed.

The physical units in a department are another name for the equivalent units of production.

Direct material cost per equivalent unit is computed by taking total material costs charged to the department for the period and dividing by the physical units in the process during the period.

When equivalent units of production are different for materials and conversion costs, unit costs are computed for materials, conversion, and total manufacturing.

The total manufacturing cost per unit is used in computing the completed units costs and transferred-out costs during the period.

A production cost report is an internal document for management that shows production quantity and cost data for a particular job.

Production cost reports provide a basis for evaluating the productivity of a department.

Companies can use a combination of a process costing and a job-order costing system at the same time.

One similarity of process costing system with job-order costing system is that both determine total manufacturing costs after each job or process.

The flow of costs in a process costing system requires that materials be added in one department, labor added in another department and manufacturing overhead in a third department.

When finished goods are sold, the journal entry to record the cost of goods sold :

Dr Finished Goods Inventory

Cr. Cost of Goods Sold

When there is no beginning and no ending work in process; and materials are entered at the beginning of the process, equivalent units of materials are the same as the units started into production.

In order to compute the physical unit flow, a company must first compute unit production costs.

A process costing system is most appropriate when..

A characteristic of products that are mass-produced in a continuous fashion is that..

A process cost system would be used for all of the following products except...

In a process costing system..,

Which of these statements best reflects a major distinguishing factor between a job-order costing system and a process costing system?

Which of the following is a true statement about process costing systems?

Which of the following manufacturing cost elements occurs in a process costing system?

In a process costing system, product costs are summarized:...

When manufacturing overhead costs are assigned to production in a process costing system, they are debited to

A product requires processing in two departments, the Baking Department and then the Packaging Department, before it is completed. Costs transferred-out from the Baking Department will be transferred-in to:...

Which of the following would not appear as a debit in the Work in Process Inventory account of a second department in a two stage production process?

Barnes and Miller Manufacturing is trying to determine the equivalent units for conversion costs with 10,000 units of ending work in process at 80% completion and 32,000 physical units. There are no beginning units in the department. Conversion costs occur evenly throughout the entire production period. What are the total equivalent units for conversion costs for the current period?

20,000 units in a process that are 70% complete are referred to as: