Statements regarding a process cost system

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Reference no: EM131211200

1. When manufacturing overhead is applied to production in a job order cost system, the accounting records would reflect an increase in which of the following?

Finished Goods Inventory

Cost of Goods Sold

Work in Process

Raw Materials Inventory

2. Which of the following statements regarding a process cost system is false?

Unit cost is determined for a designated period of time.

Unit costs are computed for each department.

The number of equivalent whole units for a period takes into account the stage of completion of ending Work in Process Inventory.

Use of a process cost system would be appropriate for a company that manufactures luxury yachts.

Reference no: EM131211200

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