ECONOMICS

Detailed explanation-1: -Which of the following would not appear as a debit in the Work in Process account of a second department in a two stage production process? Cost of products transferred out.

Detailed explanation-2: -Manufacturing Overhead would be credited. Work in Process Inventory would be debited.

Detailed explanation-3: -Answer and Explanation: The correct answer is c. products are heterogeneous. Process costing is not applicable to heterogeneous products because they are unique products.

Detailed explanation-4: -Answer and Explanation: The correct option is (c) a paint manufacturer. Process costing system is suitable for those industries which have homogenous products, a continuous production line where output of one step is input for successive step.

Detailed explanation-5: -When recording raw materials, a debit is made to the raw materials inventory account, while a credit is made to the accounts payable account. When raw materials are used, the accounting treatment varies according to whether the raw materials are direct or indirect.