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Examples of industries that would use process costing include the pharmaceutical and semiconductor industry. T The principal difference between process costing and job costing is that in job costing an averaging process is used to compute the unit costs of products or services. F Process-costing systems separate costs into cost categories according to the timing of when costs are introduced into the process. T Estimating the degree of completion for the calculation of equivalent units is usually
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  Examples of industries that would use process costing include the pharmaceutical and semiconductor industry. T The principal difference between process costing and job costing is that in job costing an averaging process is used to compute the unit costs of products or services. F Process-costing systems separate costs into cost categories according to the timing of when costs are introduced into the process. T Estimating the degree of completion for the calculation of equivalent units is usually easier for conversion costs than it is for direct materials. F Process-costing journal entries and job-costing journal entries are similar with respect to direct materials and conversion costs. T The accounting (for a bakery) entry to record the transfer of rolls from the mixing department to the baking department is: Work in Process-Mixing Department Work in Process-Baking Department F The weighted-average process costing method does not distinguish between units started in the previous period but completed during the current period and units started and completed during the current period. T Equivalent units in beginning work in process + equivalent units of work done in the current period equals equivalent units completed and transferred out in the current period minus equivalent units in ending work in process. F In the weighted-average costing method, the costs of direct materials in beginning inventory are not included in the cost per unit calculation since direct materials are almost always added at the start of the production process. F The FIFO process costing method merges the work and the costs of the beginning inventory with the work and the costs done during the current period. F The first-in, first-out process-costing method assumes that units in beginning inventory are completed during the current accounting period. T Process costing FIFO is usually applied to both the units entering a department and the units leaving a department. F Activity-based costing has more applicability in a process-costing system than in a job-costing environment.  F A major advantage of the weighted-average process costing is that it provides managers with information about changes in the costs per unit from one period to the next. F Standard costing is extremely useful when unique, high cost products are produced, as compared to the production of multiple products. F Under standard costing the cost per equivalent-unit calculation is more difficult than in either weighted average or FIFO. F Transferred-out costs are incurred in previous departments that are carried forward as the product's cost as it moves to a subsequent process in the production cycle. T Each department is regarded as a distinct accounting entity when interdepartmental transfers are present in an organization. T Hybrid costing systems are developed to cost products that are produced in a standardized environment, but are often customized to meet the needs of some of its customers. T An operation-costing system uses work orders that specify needed direct materials and step-by-step operations. T
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