134.Indicate whether each of the following statements about process costing systems is true or false.The use of a predetermined overhead rate is not required with process costing because the method...

134.Indicate whether each of the following statements about process costing systems is true or false.


The use of a predetermined overhead rate is not required with process costing because the method calculates an average unit cost.
When manufacturing overhead is applied to units of product, total assets do not change.
For Morris Company, the cost per equivalent whole unit was $3.58. If the ending work in process was 8,000 units 85% complete, the total cost assigned to these units would be $28,640.
A company with three processing departments generally would calculate a cost per equivalent whole unit for each department.
With a process costing system, a company will not have to deal with over- or underapplied overhead.

135.Brown Company engaged in the following transactions during May 2014. Indicate whether each is an asset source (AS), asset use (AU), or asset exchange (AE) transaction.


Purchased raw materials for cash, $42,000
Used raw materials to begin jobs, $28,400
Paid wages of production employees, $18,000
Applied overhead at rate of $1.25 per direct labor dollar
Completed job that had cost $32,000
Sold goods for $44,000 cash
The goods referred to in the transaction above had cost $29,500 to complete