T-Account Entries Posted in Process-Costing Systems

question 69

Multiple Choice

T-account entries posted in process-costing systems:

• A)are different compared to the T-account entries made in job-costing systems for direct materials and conversion costs.
• B)in job-costing have one work-in-process account for each process.
• C)are similar to the T-account entries made in job-costing systems for direct materials and conversion costs.
• D)are never used to record purchase of direct materials used in production.
• E)are never used by managerial accountants in process-costing systems.

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Definitions:

Stocks

Financial instruments that represent ownership shares in a company, giving holders a claim on part of the company's assets and earnings.

Property Taxes

Taxes paid by property owners to local governments based on the assessed value of their real estate.

Depreciation

An accounting method of allocating the cost of a tangible asset over its useful life.

Insurance

A contract represented by a policy in which an individual or entity receives financial protection or reimbursement against losses from an insurance company.