1. In process costing, costs are accumulated in processing departments, rather than by job. Trucy False 2. Under the FIFO method, the cost of materials in the beginning work in process inventory is used in the computation of the cost per equivalent unit for materials. (True False 3. A process costing system is suited for production of a large quantity of a homogeneous product. True False 4. The variable expense per unit is $8 and the selling price per unit is $48. Then the contribution margin ratio (s 70%. True False 5. The margin of safety percentage is equal to the margin of safety in dollars divided by total sales in dollars. True False 6. A process costing system: A. uses a separate Work in Process account for the entire company. B. uses a single Work in Process account for each processing department. C. uses a separate Work in Process account for each type of product produced. D. does not use a Work in Process account in any form. 7. A company should use process costing, rather than job order costing, if: A. production is only partially completed during the accounting period. B. the product is manufactured in batches only as orders are received. C. the product is composed of mass-produced homogeneous units. D. the product goes through several steps of production. 8. Equivalent units for a process costing system using the weighted-average method would be equal to: A. units started and completed during the period plus equivalent units in the ending work in process inventory. B. units completed during the period less equivalent units in the beginning inventory, plus equivalent units in the ending work in process inventory. (C.) units completed during the period and transferred out. D. units completed during the period plus equivalent units in the ending work in process inventory