Process Costing

Question 1

What are 4 different characteristics of Job order costing compared to Process costing

Answer 1

1. many jobs are worked on during the period
2. costs are accumulated by individual jobs
3. unit costs are figured out by job
4. Job cost sheet is the key document

Question 2

What are 4 different characteristics of PROCESS costing compared to job order costing

Answer 2

1. A single product is produced for a long period of time
2. Costs are accumulated by departments
3. Unit costs are computed by department
4. department production report is the key document

Question 3

what is the key document in process costing?

Answer 3

department production report

Question 4

What is the key document in Job order costing?

Answer 4

Job cost sheet

Question 5

which costing systems is easier to account for, job order or process costing

Answer 5

process costing

Question 6

what is conversion cost?

Answer 6

Direct labour plus MOH

Question 7

What is a key difference in Process costing compared to Job Order

Answer 7

There are more than one WIP accounts used, one for each department where Job order only has one WIP account for each job

Question 8

When goods are completed in one department and move on to another department, what is this called\/

Answer 8

for department A - it is called cost of goods completed and in
department B - it is called transferred in cost
journal entry: WIP - dept b (DR), WIP-Dept A (CR)