Question

1.A process cost system and a job order cost system both use a predetermined overhead rate to apply estimated manufacturing overhead costs to work in process.

true or false

2. Under job-order costing, the actual direct material, actual direct labor, and estimated overhead costs are recorded on the job cost sheet.

true or false

3. In a job-order cost system, the inventory accounts generally are maintained on a perpetual basis.

true or false

4. Process costing is used for products produced in mass quantities through a continuous process that provides similar inputs to each unit produced.

true or false

Answer 1

Answer 1: True.

Explanation: Both process and job costing use a predetermined overhead rate to apply estimated manufacturing overhead costs.

Answer 2: False.

Explanation: Under job-order costing, the actual direct material, actual direct labor, and applied manufacturing overhead costs are recorded on the job cost sheet.

Answer 3. True.

Explanation: Being a cost accounting system , job -order cost system maintains the inventory record as per perpetual inventory system.

Answer 4 . True.

Explanation: Under process costing mass quantities of product are produced through a continuous process that uses similar amount of material, labor & overhead to each unit produced