41. Hybrid costing systems can only be applied to agricultural products.
42. When a process cost accounting system records the purchase of raw materials, the Raw Materials Inventory account is credited.
43. When a process cost accounting system records the purchase of raw materials, the Raw Materials Inventory account is debited.
44. When a process cost accounting system assigns the cost of materials to a production department, the journal entry debits the Raw Materials Inventory account and credits the Goods in Process Inventory account for that department.
45. If Department A uses $10,000 of direct materials and Department B uses $15,000 of direct materials, the following journal entry would be recorded by the process cost accounting system:
|
Goods in Process Inventory, Department A
|
10,000
|
|
|
Goods in Process Inventory, Department B
|
15,000
|
|
|
Raw Materials Inventory
|
|
25,000
|
46. If Department J uses $40,000 of direct materials and Department K uses $70,000 of direct materials, the following journal entry would be recorded by the process cost accounting system:
|
Raw Materials Inventory
|
70,000
|
|
|
Goods in Process Inventory, Department J
|
|
40,000
|
|
Goods in Process Inventory, Department K
|
|
30,000
|
47. If Department Q uses $60,000 of direct materials and Department T uses $15,000 of direct materials, the following journal entry would be recorded by the process cost accounting system:
|
Goods in Process Inventory, Department Q
|
60,000
|
|
|
Goods in Process Inventory, Department T
|
15,000
|
|
|
Finished Goods Inventory
|
|
75,000
|
48. A materials consumption report is a source document that summarizes the materials used during a reporting period.
49. The following journal entry would be made to record the use of direct materials in the reporting period covered by the information:
|
Goods in Process Inventory, Pickling Dept
|
16,000
|
|
|
Goods in Process Inventory, Canning Dept
|
3,000
|
|
|
Raw Materials Inventory
|
|
19,000
|
50. After all process cost accounting journal entries are recorded and posted for a reporting period, the Factory Payroll account should have a zero balance.