COST ACCOUNTING
JOB ORDER COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Overhead is assigned only to the last process
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Costs are accumulated in each production department
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it tracks and assigns both period and product costs
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It uses only one Work-in-Process Inventory account
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Detailed explanation-1: -A process costing system accumulates costs when a large number of identical units are being produced. In this situation, it is most efficient to accumulate costs at an aggregate level for a large batch of products and then allocate them to the individual units produced.
Detailed explanation-2: -In a process costing system, costs are accumulated by department. Raw material costs can be added only to the first processing department in a process costing system. Under the weighted-average method of process costing, each unit transferred out is considered as an equivalent unit.
Detailed explanation-3: -Process costing is a costing method or an operational type of costing in which a manufacturer tracks the cost of production of a sequence of continuous or repetitive processes required to produce a product.
Detailed explanation-4: -Process costing is a method of costing under which all costs are accumulated for each stage of production or process, and the Page 2 2 cost per unit of product is ascertained at each stage of production by dividing the cost of each process by the normal output of that process. 1.2.