1. Which of the following most likely uses a process cost system?

1. Purse manufacturer
2. Oil refinery
3. Automobile manufacturer
4. Guitar manufacturer

2. Process and job order cost systems are similar in that each system

1. records and summarizes product costs.
2. classifies product costs as direct materials, direct labor, and factory overhead.
3. allocates factory overhead costs to products.
4. All of these choices are correct.

1. The first step in preparing a cost of production report is to _____.

1. compute equivalent units of production
2. determine the units to be assigned costs
3. determine the cost per equivalent unit
4. allocate costs to units transferred out and partially completed units

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2. The last step in preparing a cost of production report is to _____.

1. compute equivalent units of production
2. determine the units to be assigned costs
3. determine the cost per equivalent unit
4. allocate costs to units transferred out and partially completed units

3. The _____inventory cost method that assumes the inventory purchased first is sold first.

1. FIFO
2. LIFO
3. specific identification
4. average cost

4. The number of units in production during a period, whether completed or not, is known as _____.

1. partial units
2. whole units
3. equivalent units of production
4. None of these are correct.

5. The journal entry to recognize depreciation on machinery would include a

1. debit to Factory Overhead.
2. debit to Accumulated Depreciation.
3. credit to Factory Overhead.
4. None of these choices are correct.

6. The journal entry to record the transfer from work in process to finished goods would include a debit to

1. Work in Process.
2. Finished Goods.
3. Cost of Goods Sold.
4. None of these choices are correct.

7. The quantity of the material output divided by the quantity of the material input gives you the _____.

1. yield
2. direct materials cost per equivalent unit
3. average cost per unit
4. None of these are correct.

8. Compute the yield as a percentage rounded to two digits after the decimal, assuming 110 pounds of tea entered the Packaging Department and 103 pounds of tea were packaged.

1. 1.07%
2. 93.64%
3. 6.36%
4. 95.67%

9. A management approach that focuses on reducing time and cost and eliminating poor quality is known as ________.

1. Kanban processing
2. near-zero defects management
3. just-in-time processing
4. None of these are correct.

10. In lean manufacturing, processing functions are combined into work centers, sometimes called ________.

1. assembly line
2. department
3. manufacturing cell
4. None of these are correct.

11. Under the __________ method, all production costs (materials and conversion costs) are combined together for determining equivalent units and cost per equivalent unit.

1. FIFO
2. LIFO
3. weighted average cost
4. job order cost

12. The cost per equivalent unit is determined by dividing the __________ by the __________.

1. total production costs; total equivalent units of production
2. total equivalent units of production; total production costs
3. goods available for sale in dollars; goods available for sale in units
4. None of these choices are correct.