Robert Wilkins has prepared the following list of statements

Robert Wilkins has prepared the following list of statements about process cost accounting. Identify each statement as true or false. 1. Process cost systems are used to apply costs to similar products that are mass-produced in a continuous fashion 2. A process cost system is used when each finished unit is indistinguishable from another. 3. Companies that produce soft drinks, movies, and computer chips would all use process cost accounting 4. In a process cost system, costs are tracked by individual jobs. 5. Job order costing and process costing track different manufacturing cost elements. 6. Both job order costing and process costing account for direct materials, direct labor, and manufacturing overhead 7.Costs flow through the accounts in the same basic way for both job order costing and process costing. 8. In a process cost system, only one work in process account is used. 9. In a process cost system, costs are summarized in a job cost sheet 10. In a process cost system, the unit cost is total manufacturing costs for the period divided by the equivalent units produced during the period

Solution

1. Process cosst sytem ae used to apply costs to similar products that are mass produced in a continous fashion TRUE 2. A process cost system is used when eachh finished unit is indistinguishable from another TRUE 3. Companies that produce soft drinks, movies, eyc use process costing TRUE 4. In a Process costing, cost are tracked under individual job FALSE 5. Job costing and process costing uses different manufacturing cost element FALSE 6. Both Job order costing and process costing account for direct material, labour and Oh. TRUE 7. Cost flow through the account in the same basic way for both job order and process costing FALSE 8. In a process cost system, only one work in process account is used. FALSE 9. In a process costing, cost is summarized in a job cost sheet FALSE 10. In a process, the unit cost is total manufacturing cost for the period divide by equivalent units produced TRUE