Question

Which of the following statements is true? A. The work in Process Inventory account is the focal point of process costing. B. To compute unit costs using the FIFO costing method, total costs of direct materials, direct labor, and overhead that have been accumulated in the Work in Process Inventory account or accounts are divided by the units worked on during the period C. Equivalent units usually are computed for direct materials and manufacturing overhead combined D. Labor costs are accounted for differently from manufacturing overhead costs in a process costing system

Answer 1

Multiple choice

Which of the following statements is true?

To compute unit costs using the FIFO costing method, total costs of direct materials, direct labor, and overhead that have been accumulated in the Work in Process Inventory account or accounts are divided by the units worked on during the period, Equivalent units usually are computed for direct materials and manufacturing overhead combined and . Labor costs are accounted for differently from manufacturing overhead costs in a process costing system All are false.

So answer is a) A. The work in Process Inventory account is the focal point of process costing.