Question :
91. A system of accounting in which the costs of each : 1225538
91. 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.
92. A company that applies process costing is most frequently characterized by:
A. Low standardization and high production volume.
B. Custom orders and homogeneous products.
C. Repetitive production and heterogeneous products.
D. Repetitive production and low production volume.
E. Homogeneous product and high production volume.
93. An organizational unit of a factory that has the responsibility for partially manufacturing or producing a product is called a:
A. Production department.
B. Service department.
C. Primary department.
D. Responsibility department.
E. Control department.
94. A hybrid costing system would be most appropriate when:
A. A manufacturer is able to standardize processes while at the same time attempting to meet individual customer needs.
B. Large quantities of identical products are being produced.
C. The volume of production is low and costs are high.
D. There is no standardization of units of production.
E. All of these would necessitate a hybrid costing system.
95. In a process cost accounting system, direct material costs incurred are recorded:
A. Indirectly to a Goods in Process Inventory account.
B. Indirectly to a Finished Goods Inventory account.
C. Directly to a Goods in Process Inventory account.
D. Directly to a Finished Goods Inventory account.
E. Directly to a Cost of Goods Sold account.
96. The purchase of raw materials on account in a process costing system is recorded with a:
A. Debit to Purchases and credit to Cash.
B. Debit to Purchases and a credit to Accounts Payable.
C. Debit to Raw Materials Inventory and a credit to Accounts Payable.
D. Debit to Accounts Payable and a credit to Raw Materials Inventory.
E. Debit to Goods in Process Inventory and a credit to Accounts Payable.
97. When raw materials are purchased on account for use in a process costing system, the corresponding journal entry that should be recorded will include:
A. A debit to Goods in Process Inventory.
B. A debit to Accounts Payable.
C. A credit to Cash.
D. A debit to Raw Materials Inventory.
E. A credit to Raw Materials Inventory.
98. Direct labor and indirect labor are recorded, respectively, to:
A. Factory Overhead and Goods in Process Inventory.
B. Goods in Process Inventory and Finished Goods Inventory.
C. Finished Goods Inventory and Goods in Process Inventory.
D. Goods in Process Inventory and Factory Overhead.
E. Cost of Goods Sold and Finished Goods Inventory.
99. In a process operation, the direct labor of a production department includes:
A. All labor used exclusively by that department, even if the labor is not applied to the product itself.
B. All labor used exclusively by that department, but only if the labor is applied to the product itself.
C. All labor for that department, including labor for services that help more than one production department, such as clerical, repair, and computer technicians.
D. Only labor that helps more than one production department, such as clerical, repair, and computer technicians.
E. Only that labor that is recorded in the Factory Payroll account.
100. After posting all actual factory overhead and applying factory overhead to production departments in a process costing system,
A. There will never be underapplied overhead.
B. There will never be overapplied overhead.
C. There will always be underapplied overhead.
D. There will always be overapplied overhead.
E. There may be over or underapplied overhead.
