In the month of June, a department had 20,000 units in beginning work in process that were 70% complete. During June, 70,000 units were transferred into production from another department. At the end of June there were 10,000 units in ending work in process that were 40% complete. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. How many units were transferred out of the process in June?

	a.	70,000 units
	b.	100,000 units
	c.	90,000 units
	d.	80,000 units

A job order cost system would most likely be used by a/an:

	a.	paint manufacturer
	b.	automobile manufacturer
	c.	specialty printing company
	d.	cement mixer

3.

Units transferred out are computed by:

	a.	subtracting ending work in process units from the units started into production.
	b.	subtracting beginning work in process units from the units to be accounted for.
	c.	subtracting ending work in process units from the units accounted for.
	d.	subtracting beginning work in process units from the units started into production.

4.

Which of the following is an example of a period cost?

	a.	depreciation of the factory building
	b.	wages of factory workers
	c.	salesmen's commissions
	d.	factory utilities