COST ACCOUNTING
PROCESS COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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on Job Cost Sheets.
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on Production Cost Reports.
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after each unit is produced.
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when the products are sold.
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Detailed explanation-1: -The answer is: c) after unit is produced . Process costing is used in cost accounting to collect and assign manufacturing costs to the units being produced.
Detailed explanation-2: -The production cost report. summarizes the production and cost activity within a department for a reporting period. It is simply a formal summary of the four steps performed to assign costs to units transferred out and units in ending work-in-process (WIP) inventory.
Detailed explanation-3: -Job cost sheet. This is the correct answer.
Detailed explanation-4: -In accounting, process costing is a method of assigning production costs to units of output. In process costing systems, production costs are not traced to individual units of output. Costs are assigned first to production departments. Then assign the costs to units of output as they move through the departments.
Detailed explanation-5: -With process costing, companies track the flow of costs from department to department, rather than tracking costs for each individual item. Each department adds direct labor and manufacturing overhead costs, plus the cost of any raw materials it uses.