Figure 6-2
Leandro Corp. manufactures wooden desks. Production consists of three processes: cutting, assembly, and finishing. The following costs are given for April:
There were no work in process inventories and 1,000 podiums were produced.
-Which is NOT a feature of a process costing system?
A) Standardized products pass through standardized processes.
B) Each unit is treated uniquely in receiving a process.
C) Manufacturing costs are accumulated by a process for a given time period.
D) Unit costs are calculated for each department.

Question

Figure 6-2
Leandro Corp. manufactures wooden desks. Production consists of three processes: cutting, assembly, and finishing. The following costs are given for April:
  There were no work in process inventories and 1,000 podiums were produced.
-Which is NOT a feature of a process costing system?
A) Standardized products pass through standardized processes. 
B) Each unit is treated uniquely in receiving a process. 
C) Manufacturing costs are accumulated by a process for a given time period. 
D) Unit costs are calculated for each department.

Quizplus · Accepted Answer

In a process costing system, products are not treated uniquely; instead, they are mass-produced in a continuous flow, and costs are averaged over all units.

Figure 6-2 Leandro Corp. Manufactures Wooden Desks. Production Consists of Three Processes