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.

Question

Quizplus · Accepted Answer

T-account entries in process-costing systems are similar to the T-account entries made in job-costing systems for direct materials and conversion costs. This is because both systems allocate production costs to products or processes. Option A is incorrect because T-account entries in job-costing also have separate accounts for direct materials and conversion costs. Option B is incorrect as job-costing has a separate work-in-process account for each job, not each process. Option D is incorrect as T-account entries are used to record purchase of direct materials used in production. Option E is incorrect as managerial accountants in process-costing systems use T-accounts to analyze and allocate production costs.

T-Account Entries Posted in Process-Costing Systems