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MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Companies that manufacture identical items through a series of

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MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Companies that manufacture identical items through a series of uniform production steps use to determine cost per unit sold. A) the weighted-average method B) the first-in-first-out method C) a job order costing system D) a process costing system 2) Which of the following businesses is most likely to use a process costing system? A) a law firm B) an accounting firm C) a construction company D) a soda manufacturer 3) Under process costing, the costs incurred by each department are recorded in A) a production cost report B) the Finished Goods Inventory account. C) a job cost sheet D) the Cost of Goods Sold account 4) Gizmo Manufacturers, a widgets manufacturing company, divides its production operations into three processes-Department 1, Department 2, and Department 3. The company uses a process costing system. Gizmo incurred the following costs during the year 2014, to produce 5,000 units. If Gizmo could sell only 3,500 units in 2014, what will be the cost per unit of widget produced? A) $5.50 B)$4.70 C)$3.50 D) $7.85 5) Which of the following best describes the term equivalent units? A) different types of units that have some selling price B) substitute of units that are partially completed C) partially completed units of output that will be said as is D) partially completed units expressed in terms of fully complete units of output 6) Which of the following statements correctly describes the term conversion costs? A) the cost to convert finished goods to sales to customers B) the cost of direct labor combined with manufacturing overhead C) the cost of direct materials, direct labor, and manufacturing overhead ants incurred during production D) the cost incurred for direct and indirect materials during production

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