1, Which of the following production characteristics is better suited for process costing and not job order costing?

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A. Each product batch is distinguishable from the prior batch.

B. The costs are easily traced to a specific product.

C Costs are accumulated by department.

D. The value of work in process is the direct material used, the direct labor incurred, and the overhead applied to the job in process.

2. A process costing system is most likely used by which of the following?

A. airplane manufacturing

B. a paper manufacturing company

C. an accounting firm specializing in tax returns

D. hospital

3. Which of the following is a prime cost

A. direct labor

B. work in process inventory

C. administrative labor

D. factory maintenance expenses

4. Which of the following is a conversion cost?

A. raw materials

B. direct labor

C. sales commissions

D. direct material used

5. During production, how are the costs in process costing accumulated?

A. to cost of goods sold

B. to each individual product

C. to manufacturing overhead

D. to each individual department

6. Which is not needed to compute equivalent units of production?

A. the percentage of completion for inventory still in process

B. the number of units transferred out

C. the number of units started and completed

D. the material cost per unit