^{6 Easy Multiple Choice Questions, Need answers to be in order to compare.}

24) Process costing systems:

a.Are used when companies produce homogeneous units.

b.Do not have work in process accounts for each department.

c.Do not use equivalent units of production.

d.Track costs to individual products.

*

25)In a process costing system, the number of units started and completed for a period is equal to:

a.Units transferred out less units in beginning work in process.

b.Units transferred out less units in ending work in process.

c.Units transferred out plus units in beginning work in process.

d.Units transferred out plus units in ending work in process.

*

26) Which of the following is not a characteristic of a process costing system?

a.The costs incurred in each process are accumulated in separate Work in Process Inventory accounts.

b.It is suitable for mass-produced operations.

c.Costs are accumulated separately for each unit of production as it moves through the factory.

d.The cost of a finished unit is the sum of the unit costs of performing each manufacturing process.

*

27) The best cost system to use for a company producing a continuous stream of similar items would be a:

a.Job order system.

b.Process costing system.

c.Production costing system.

d.No cost system is required when jobs are similar.

*

28) In a process costing system, costs flow from one Work in Process Inventory account to the next in the same sequence as:

a.Units flow through production.

b.In a LIFO periodic inventory system.

c.Shipped to customers.

d.In a job order cost system.

*

29) The Work in Process - Assembly account would be credited and the Work in Process - Packaging account would be debited when:

a.Goods are transferred from Assembly to Packaging.

b.Goods are transferred from Packaging to Assembly.

c.The units are complete and ready for sale.

d.The number of units started during the period is greater than the number of units in process at the end of the period.

*

30) Companies that compute equivalent units of production do so to:

a.Comply with income tax regulations.

b.Compute total manufacturing costs for the period.

c.Determine a manufacturing overhead application rate.

d.Determine departmental per-unit costs.