5. The physical units in a department are another name for the equivalent units of production.

answer choices

TRUE

FALSE

6. A process costing system is most appropriate when..

answer choices

A) variety of different products are produced, each one requiring different types of materials, labor, and overhead.

B) the focus of attention is on a particular job or order.

C) similar products are mass-produced.

D) individual products are custom made to the specification of customers.

7. A characteristic of products that are mass-produced in a continuous fashion is that..

answer choices

A) the products are identical or very similar in nature.

B) they are grouped in batches.

C) they are produced at the time an order is received.

D) their costs are accumulated on job cost sheets.

8. Which of these statements best reflects a major distinguishing factor between a job-order costing system and a process costing system?

answer choices

A) The manufacturing cost elements included.

B) The time period each covers.

C) The detail at which costs are calculated.

D) The number of work in process inventory accounts.

9.Which of the following is a true statement about process costing systems?

answer choices

A) In process costing systems, costs are accumulated but not assigned.

B) A process costing system has one work in process inventory account for each process.

C) In process costing systems, costs are summarized on job cost sheets.

D) Unit costs are not computed in process costing systems.

10.In a process costing system, product costs are summarized:...

answer choices

A) on job cost sheets.

B) on production cost reports.

C) after each unit is produced.

D) when the products are sold.

11.When manufacturing overhead costs are assigned to production in a process costing system, they are debited to

answer choices

A)the Finished Goods Inventory account.

B) Cost of Goods Sold.

C) a Manufacturing Overhead account.

D) a Work in Process Inventory account.

12. 20,000 units in a process that are 70% complete are referred to as:

answer choices

A) 20,000 equivalent units of production.

B) 6,000 equivalent units of production.

C) 14,000 equivalent units of production.

D) 6,000 equivalent units of production.

13. Which of the following would not appear as a debit in the Work in Process Inventory account of a second department in a two stage production process?

answer choices

A) Direct materials used.

B) Overhead applied.

C) Labor assigned.

D) Cost of products transferred out.

14. A process cost system would be used for all of the following products except...

answer choices

A) chemicals

B) computer chips

C) soft drinks

D) motion pictures

15. In order to compute the physical unit flow, a company must first compute unit production costs.

answer choices

TRUE

FALSE

16. Which of the following items is NOT characteristic of a process costing system?

answer choices

A) Once production begins, it continues until the finished product emerges

B) The products produced are heterogeneous in nature

C) The focus is on continually producing homogeneous products

D) When the finished product emerges, all units have precisely the same amount of materials, labour and overhead

17. In a process cost system, the flow of cost is:

answer choices

A) work in process, cost of goods sold, finished goods

B) finished goods, work in process, cost of goods sold

C) finished goods, cost of goods sold, work in process

D) work in process, finished goods, cost of goods sold

18. Conversion costs are the sum of:

answer choices

A) Fixed and variable overhead costs

B) labor costs and overhead costs

C) direct material costs and overhead costs

D) Direct labour and indirect labour costs

19 Indicate which of the following statement is NOT correct?

answer choices

A) both a job order and process cost system track the same three manufacturing cost elements - Direct material, Direct labour and manufacturing overhead

B) A job order cost system uses only one work in process account, whereas a process cost system uses multiple work in process account

C) Manufacturing costs are accumulated the same way in a job order and in a process cost system

D) Manufacturing costs are assigned the same way in a job order and in a process cost system

20. Lan Largo Co. has unit costs of RM10 for materials and RM30 for conversion costs. If there are 2,500 units in ending work in process, 40% complete as to conversion costs and fully complete as to materials cost, the total cost assignable to the ending work in process inventory is:

answer choices

A) RM45,000

B) RM55,000

C) RM75,000

D) RM100,000