98.Payment of cash for sales staff salaries is an asset exchange transaction.
True False
99.Payment of cash for production department employee wages is an asset exchange transaction.
True False
100.Factory insurance is an indirect product cost and part of overhead.
True False
101.A process cost system uses just two inventory accounts, raw materials inventory and work in process inventory.
True False
102.In process cost systems, product costs flow through the same accounts as in a job-order cost system.
True False
103.Process cost systems do not distinguish the cost of one unit of product from another.
True False
104.A process cost system and a job order cost system both use a predetermined overhead rate to apply estimated manufacturing overhead costs to work in process.
True False
105.The primary advantage of process cost systems is that there is no over-or-underapplied manufacturing overhead to account for.
True False
106.Under process costing, a cost of production report is prepared to determine the amount of costs that should be transferred to the next department or to finished goods.
True False
107.The weighted average method of process costing does not account for the state of completion of units in beginning inventory.
True False
108.Two methods of computing equivalent whole units are the LIFO and the weighted average methods.
True False
109.The 10,000 units in Department B that are 30% complete are equivalent to 3,000 whole units.
True False
110.A company that uses a process cost system would calculate the cost per equivalent unit and then use that amount to allocate costs between the goods transferred out and the beginning work in process inventory.
True False
111.The weighted average method of calculating equivalent units does not account for the state of completion of units in beginning work in process inventory.
True False