70.Which of the following products is least likely to be produced in a process operations system?
A. Compact disks
B. Slacks for casual wear
C. Baseball hats
D. Calculators
E. Custom cabinets
71.Which of the following products is most likely to be produced in a process operations system?
A. Airplanes
B. Cereal
C. Bridges
D. Designer bridal gowns
E. Custom cabinets
72.Which of the following characteristics does not usually apply to process operations 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. Costs are computed using equivalent units.
73.Yamada Company applies factory overhead to its production departments on the basis of 90% of direct labor costs. In the Assembly Department, Yamada had $125,000 of direct labor cost, and in the Finishing Department, Yamada had $35,000 of direct labor cost. The entry to apply overhead to these production departments is:
A. Debit Factory Overhead—Assembly $112,500; debit Factory Overhead—Finishing $31,500; credit Work in Process Inventory $144,000.
B. Debit Factory Overhead $144,000; credit Work in Process Inventory—Assembly $112,500; credit Work in Process—Finishing $31,500.
C. Debit Factory Overhead $144,000; credit Factory Payroll $144,000.
D. Debit Work in Process Inventory—Assembly $112,500; debit Work in Process Inventory—Finishing $31,500; credit Factory Overhead $144,000.
E. Debit Factory Payroll $144,000; credit Cash $144,000.
74.Clarksen Company uses a process costing system. The company requisitioned $93,000 of materials for Department A and $67,000 of materials for Department D. The entry to record the use of the direct materials by these two departments is:
A. Debit Raw Materials Inventory $160,000; credit Accounts Payable $160,000.
B. Debit Work in Process Inventory—Dept A $93,000; debit Work in Process Inventory—Dept D $67,000; credit Raw Materials Inventory $160,000.
C. Debit Factory overhead $160,000; credit Raw Materials Inventory $160,000.
D. Debit Raw Materials Inventory—Dept A $93,000; debit Raw Materials Inventory—Dept D $67,000; credit Work in Process Inventory $160,000.
E. Debit Work in Process Inventory—Dept A $93,000; debit Work in Process Inventory—Dept D $67,000; credit Accounts Payable $160,000.
75.Which of the following characteristics applies to process costing but not to job order cost accounting?
A. Use of a predetermined overhead rate.
B. Identifiable units of production.
C. Equivalent units of production.
D. Determining cost of goods manufactured.
E. Use of a single Work in Process Inventory account.
76.A key idea in process costing that refers to the number of units that could have been started and completed given the costs incurred during the period is known as:
A. Manufacturing overhead.
B. Units in process.
C. A job cost sheet.
D. Equivalent units of production.
E. Process cost summary.
77.Equivalent units of production are equal to:
A. The number of units that could have been started and completed given the costs incurred during the period.
B. The number of finished units actually produced during a period.
C. The number of units started 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.
78.Which of the following is the best explanation for why it is necessary to calculate equivalent units of production in a process costing environment?
A. In most manufacturing environments, it is not possible to conduct a physical count of units.
B. Companies often use a combination of a process costing and job order costing systems.
C. In most process costing systems, direct materials are added at the beginning of the process while conversion costs are added evenly throughout the manufacturing process.
D. All of the work to make a unit 100% complete and ready to move to the next stage of production or to finished goods inventory may not have been completed in a single time period.
E. In most cases, there is no difference between physical units and equivalent units of production.
79.The combined costs of direct labor and factory overhead per equivalent unit used by many businesses with process operations is called:
A. Physical cost per equivalent unit
B. Overhead cost per equivalent unit
C. Combined cost per equivalent unit
D. Conversion cost per equivalent unit
E. Finished cost per equivalent unit
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