11) In process costing, the costs flow from Raw Materials : 1876968
11) In process costing, the costs flow from Raw Materials Inventory, to Work In Process Inventory, to Finished Goods Inventory.
12) To simplify the accounting, the journal entry to record the transfer of costs from one WIP account to the next WIP account is generally made once a month to reflect all physical transfers that occurred during the month.
13) In process costing, the manufacturing costs assigned to the product must always follow the physical movement of the product.
14) The costs moved from one processing department to the next processing department are called "transported-out" costs in the first department and "transported-in" costs in the next department.
15) How are manufacturing costs treated in process costing?
A) The manufacturing costs are added only when the goods are in finished inventory.
B) The manufacturing costs are added only when the goods are sold.
C) The manufacturing costs always follow the physical movement of the product.
D) None of the above.
16) When units are moved from one processing department to the next, the cost associated with those units must also be moved from one WIP account to the next. What are these costs called?
A) Transported costs
B) Transmitted costs
C) Transferred costs
D) Conveyed costs
17) Baxter Company produces children's wiffle ball sets using a three-step sequential process that includes molding, coloring and finishing. When the sets are completely finished, out of which account should the cost be transferred?
A) Finished Goods Inventory
B) WIP InventoryWIP Inventory-Coloring
C) WIP InventoryWIP Inventory-Finishing
D) WIP InventoryWIP Inventory-Molding
18) Baxter Company produces Frisbees using a three-step sequential process that includes molding, coloring and finishing. At what stage would the sets be allocated Manufacturing Overhead?
A) When the Frisbees are in WIP InventoryWIP Inventory-Molding
B) When the Frisbees are in WIP InventoryWIP Inventory-Finishing
C) When the Frisbees are in WIP InventoryWIP Inventory-Coloring
D) All of the above
19) The two basic types of product costing systems are
A) department and plant.
B) FIFO and weighted-average.
C) variable and process.
D) job and process.
20) Which of the following product costing systems is normally used to assign costs to goods that are mass-produced goods?
A) Fixed costing
B) Job costing
C) Process costing
D) LIFO costing