Reference no: EM132633654

Question 1: Companies that use a process-cost accounting system would:

A. establish a separate Work-in-Process Inventory account for each manufacturing department.

B. establish a separate Finished-Goods Inventory account for each manufacturing department.

C. pass completed production directly to Cost of Goods Sold.

D. charge goods produced with actual overhead amounts rather than applied overhead amounts.

E. eliminate the need for the Finished-Goods Inventory account.

Question 2: A. In job-order costing, costs are accumulated by job order.

B. In process costing, costs are accumulated by department.

C. In process costing, the cost per unit in a department is found by spreading the period's manufacturing costs over the production activity.

D. In process costing, the total cost of each unit is found by dividing the total factory costs by the number of units completed.

E. In job-order costing, the unit cost is found by dividing the job's total cost by the job's total units.