Multiple Choice Questions:

1) Which of the following is a step in the preparation of a production cost report?

A) Assignment of costs to units completed and units in process

B) Summarization of the flow of physical units to the suppliers

C) Computation of expected units of production

D) Computation of amount of materials required for production

2) In a production cost report, ________ includes the number of units completed and transferred out of a process and the number of units remaining in ending work-in-process.

A) Total units estimated for

B) Total units budgeted for

C) Total units accounted for

D) Total units to account for

3) In a production cost report, the number of "total units to account for" consists of:

A) Units in process at the beginning of the period and units started or added during the period.

B) Units in process at the end of the period and units started or added during the period.

C) Units in process at the beginning of the period and units remaining at the end of the period.

D) Units of completed and transferred out products and total units produced.

4) Under process costing, the number of units to account for must always be ________ the number of units accounted for.

A) Greater than

B) Lesser than

C) Equal to

D) Twice

5) The costs that were incurred in a previous process and brought into a later process as part of the product's cost are called "________" costs.

A) Transferred in

B) Transferred out

C) Accounted for

D) To account for