Homework Help Question & Answers

Why is process costing needed in some companies or industries? a. To separate out the selling,...

Why is process costing needed in some companies or industries?

a.

To separate out the selling, general and administrative costs from the production process costs.

b.

Because in process costing companies, product costs are recorded as expenses (on the income statement) as they are incurred.

c.

Because in process costing companies, a job cost sheet tracks each of the product costs as they are incurred.

d.

To separate out the costs of partially completed items as they move across the production process.

0 0
Next > < Previous
ReportAnswer #1

Ans:

Process costing is a method where production process costs are identified at different processing stages. This is to identify the costs transferred and costs of partially completed items as they move across production process.

So correct answer is option D.

To separate out the costs of partially completed items as they move across the production process.

* Option A is incorrect because separating selling and administration expenses are done in variable costing.

* Option B is incorrect because on income statement periodically costs are recorded.

*Option C is incorrect because in process costing cost of each process is identified and not of each product.

You can ask your queries in comment section. Please rate if you found this helpful.

Know the answer?
Add Answer to:
Why is process costing needed in some companies or industries? a. To separate out the selling,...
Your Answer: Your Name: What's your source?
Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Match each costing system characteristic to job order costing, process costing, or both. Used by companies...

    Match each costing system characteristic to job order costing, process costing, or both. Used by companies that manufacture identical items through a series of 1. 2 3. uniform production steps or processes Transfers costs from Work-in-Process Inventory to Finished Goods Inventory to Cost of Goods Sold Used by companies that manufacture unique products or provide specialized services Has multiple Work-in-Process Inventory accounts Tracks direct materials, direct labor, and manufacturing overhead costs 4. 5.

  • Which of the following companies is most likely to use process costing? A) Crimpson Color, a...

    Which of the following companies is most likely to use process costing? A) Crimpson Color, a company selling customized garments for niche customers B) Effel & Associates, a consulting firm providing various audit and related services C) Dental Bright Inc., a company manufacturing and selling toothpaste on a large scale D) Grimpy Corp., a company manufacturing furniture for customers as per their requirements Which of the following most accurately describes the contrast between process and job costing? A) In process...

  • true or false 14. In a process costing system. partially completed units in Work-in-Process Inventory are...

    true or false 14. In a process costing system. partially completed units in Work-in-Process Inventory are typically converted to equivalent completed units. 15. Before purchasing an Enterprise Resource Planning (ERP) system, companies must confirm that the benefits of an ERP system will outweigh the costs of implementation 16. Underapplied overhead occurs when actual overhead costs are lower than overhead costs applied to jobs. 17. Total companywide estimated overhead costs will change depending on if plant wide allocation or departmental allocation...

  • Che Job costing A job-costing syste ing system has a separate job-cost record for each job....

    Che Job costing A job-costing syste ing system has a separate job-cost record for each job. A summary of the job-cost card is typically found in a subsidiary ledger. The general ledger Rocount Work-in-Process Control control presents the total of these separate job cost records pertaining to all unfinished jobs. The job-cost records and Work-in-Process Control account track ob costs from when ob start until they are complete. When jobs are completed or sold, they are recorded in the finished-goods...

  • Problem 16-03A Thakin Industries Inc. manufactures dorm furniture in separate processes. In each process, materials are...

    Problem 16-03A Thakin Industries Inc. manufactures dorm furniture in separate processes. In each process, materials are entered at the beginning, and conversion costs are incurred uniformly. Production and cost data for the first process in making a product are as follows. Cutting Department Production Data-July T12-Tables Work in process units, July 1 Units started into production 20,000 Work in process units, July 31 3,000 Work in process percent complete 60 Cost Data-July Work in process, July 1 $0 Materials 380,000...

  • Thakin Industries Inc. manufactures dorm furniture in separate processes. In each process, materials are entered at...

    Thakin Industries Inc. manufactures dorm furniture in separate processes. In each process, materials are entered at the beginning, and conversion costs are incurred uniformly. Production and cost data for the first process in making a product are as follows. Production Data-July Work in process units, July 1 Units started into production Work in process units, July 31 Work in process percent complete Cutting Department T12-Tables 0 21,400 3,210 60 Cost Data-July Work in process, July 1 Materials Labor Overhead Total...

  • Thakin Industries Inc. manufactures dorm furniture in separate processes. In each process, materials are entered at...

    Thakin Industries Inc. manufactures dorm furniture in separate processes. In each process, materials are entered at the beginning, and conversion costs are incurred uniformly. Production and cost data for the first process in making a product are as follows. Cutting Department T12-Tables Production Data-July Work in process units, July 1 Units started into production Work in process units, July 31 Work in process percent complete 21,000 3,150 Cost Data-July Work in process, July 1 Materials Labor Overhead Total $0 399,000...

  • Swifty Industries Inc. manufactures dorm furniture in separate processes. In each process, materials are entered at...

    Swifty Industries Inc. manufactures dorm furniture in separate processes. In each process, materials are entered at the beginning, and conversion costs are incurred uniformly. Production and cost data for the first process in making a product are as follows. Cutting Department T12-Tables Production Data-July Work in process units, July 1 Units started into production Work in process units, July 31 Work in process percent complete 20,400 3,060 Cost Data-July Work in process, July 1 Materials Labor Overhead Total $0 387,600...

  • Thakin Industries Inc. manufactures dorm furniture in separate processes. In each process, materials are entered at...

    Thakin Industries Inc. manufactures dorm furniture in separate processes. In each process, materials are entered at the beginning, and conversion costs are incurred uniformly. Production and cost data for the first process in making a product are as follows. Cutting Department Production Data—July T12-Tables Work in process units, July 1 0 Units started into production 20,000 Work in process units, July 31 3,000 Work in process percent complete 60 Cost Data—July Work in process, July 1 $0 Materials 380,000 Labor...

  • Thakin Industries Inc. manufactures dorm furniture in separate processes. In each process, materials are entered at...

    Thakin Industries Inc. manufactures dorm furniture in separate processes. In each process, materials are entered at the beginning, and conversion costs are incurred uniformly. Production and cost data for the first process in making a product are as follows. Production Data-July Work in process units, July 1 Units started into production Work in process units, July 31 Work in process percent complete Cutting Department T12-Tables 0 21,400 3,210 60 Cost Data-July Work in process, July 1 Materials Labor Overhead Total...

Free Homework App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.