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Jacket
Management Accounting
Willie Seal, University of Essex, UK
Ray Garrison, Brigham Young University, Provo, Utah, USA
Eric Noreen, INSEAD, France
Systems Design: Process Costing

Self-test Questions



1

When allocating labour under a process costing system with employees duties spread across two departments the correct double entry in the accounts is as follows:
(Learning Objective 1 Ch 4)
A)

Dr Salaries and Wages;
Cr WIP department A
Cr WIP Department B

B)

Dr Salaries and Wages;
Cr WIP department B

C)

Dr WIP department A
Dr WIP Department B;
Cr Salaries and Wages

D)

Dr Salaries and Wages
Cr WIP department A

2

Regarding Process Costing "Quantity Schedules", which of the following statements is untrue?
(Learning Objective 3 Ch 4)
A)They do not include equivalent units.
B)They show the flow of units through the department
C)They show the manager the stage of any completion of in-process units
D)They help in tying together the rest of a production report






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