II True or False 1 Th 2 Costs e focus of a process cost syst

II. True or False 1. Th 2. Costs e focus of a process cost system is the cost center to which costs are assigned. accumulated by a cost center are divided by the number of units produced in that cost center to compute the cost per unit. department are needed to assign the costs. method and the first-in, first-out (FIFO) method. 3. In a process cost system, detailed labor-time records for an employee who only works in one 4. Two procedures are commonly used for assigning costs to the inventories are the average cost 5. A production report shows only the number of units in the beginning work in process. serves as a source for summary journal entries that are posted to the work in process account. added to the production costs incurred in the current period added to the production costs incurred in the current period. measure such as volume, weight, size, or grade 6. A cost of production summary presents the necessary information for inventory valuation and 7. Under the average cost method, the cost of the work in process at the beginning of the period is 8. Under the average cost method, the cost of the work in process at the beginning of the period is 9. Some of the typical bases for apportionment of joint costs to joint products are physical units of 10The focus of a process cost system is the cost center.

Solution

1. Process cost system is the system where large number of units are produced through various stages or departments where each department which are determined as cost centers. The process cost system identifies direct costs in each department and assigns indirect costs to the same.

Hence the state that \"The focus of a process cost system is the cost center to which costs are assigned\" is True

2. True

3. False. The cost object is the cost center for which the management wants to know the costs. Hence as the employee works only that department his cost would be assigned to the center and detailed labor time records are not required.

4. Flase. The two procedures used to assign costs to inventories are weighted average cost method and Firstin, first out (FIFO) method.

5. False.  The production report presents necessary information for inventory valuation and serves as a source for summary journal entries. The prodution report will have details of opening balances, units placed during the month, finished during the month and work in progress by the end of the month.

6. True

7. True

8. True

9. True. The Physical unit method of apportionment of costs uses the phyiscal units of measure as basis for apportionment of joint costs

10. True. Focus of process cost system is the cost center to which costs are assigned.