AC 202 Principles of Accounting II Name____________________________ Park University Version D Quiz 5D-Chapter 20 Multiple Choice Questions ( 10 points each ) Select the ONE, BEST Answer 1. Which of the following characteristics does not usually apply to process manufacturing systems? A. Each unit of product is separately identifiable. B. Partially completed products are transferred between processes. C. Different managers are responsible for different processes. D. The output of all processes except the final process is an input to the next process. E. All of these are characteristics of process manufacturing systems. 2. Equivalent units of production are equal to: A. The number of units that could have been completed if all effort had been applied to units that were started and completed during a period. B. The number of finished units actually produced during a period. C. The number of units introduced into the process during a period. D. The number of units still in process at the end of a period. E. Physical units that were started and completed during a period. 3. Which of the following is not one of the four steps in accounting for production activity and assigning costs during a period under a process cost system? A. Determine over or underapplied overhead. B. Determine the physical flow of units. C. Compute equivalent units of production. D. Compute the cost per equivalent unit. E. Assign and reconcile costs. 4. A system of accounting in which the costs of each process are accumulated and then assigned to the units of product that passed through the process is a: A. General cost accounting system. B. Process cost accounting system. C. Job order cost accounting system. D. Manufacturing cost accounting system. E. Goods in process accounting system. Problem ( 60 points ) SHOW ALL WORK!!!!! A company uses a process cost accounting system and the weighted average method for inventory costs. The following information is available regarding direct labor for the current year: Goods in process, January 1 5500 units, 80 % complete Goods in process, December31 8800 units, 40% complete Units completed and transferred to finished goods 46900 units Direct labor costs during the year 266,300 (a) Calculate the equivalent units of production for direct labor for the year. (b) Calculate the average cost per equivalent unit for direct labor (round to the nearest cent)