Question :
100.A system of accounting in which costs accumulated and then : 1258504
100.A system of accounting in which costs are accumulated and then measured per unit at the end of a period by combining costs per equivalent unit from various departments is a:
A. General cost accounting system.
B. Process costing system.
C. Job order cost accounting system.
D. Manufacturing cost accounting system.
E. Work in Process accounting system.
101.A company that applies process costing is most frequently characterized by:
A. Low standardization and high production volume.
B. Custom orders and mass production.
C. Repetitive production and unique products.
D. Repetitive production and low production volume.
E. Similar products and high production volume.
102.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.
103.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 the products produced are unique.
104.In a process costing system, direct material costs incurred are recorded:
A. Indirectly to a Work in Process Inventory account from Factory Overhead.
B. Indirectly to a Finished Goods Inventory account from Factory Overhead.
C. Directly to a Work in Process Inventory account.
D. Directly to a Finished Goods Inventory account.
E. Directly to a Cost of Goods Sold account.
105.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 Work in Process Inventory and a credit to Accounts Payable.
106.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 Work 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.
107.Direct labor and indirect labor are recorded, respectively, to:
A. Factory Overhead and Work in Process Inventory.
B. Work in Process Inventory and Finished Goods Inventory.
C. Finished Goods Inventory and Work in Process Inventory.
D. Work in Process Inventory and Factory Overhead.
E. Cost of Goods Sold and Finished Goods Inventory.
108.Wilturner Company incurs $74,000 of labor related directly to the product in the Assembly Department, $23,000 of labor not directly related to the product but related to the Assembly Department as a whole, and $10,000 of labor for services that help production in both the Assembly and Finishing departments. The amount of direct labor and factory overhead respectively are:
A. $74,000 and $33,000.
B. $97,000 and $10,000.
C. $84,000 and $23,000.
D. $107,000 and $0.
E. $74,000 and $10,000.
109.Wilturner Company incurs $74,000 of labor related directly to the product in the Assembly Department, $23,000 of labor not directly related to the product but related to the Assembly Department as a whole, and $10,000 of labor for services that help production in both the Assembly and Finishing departments. The journal entries to record the labor would include:
A. Debit Work in Process Inventory $74,000; debit Factory Overhead $33,000.
B. Debit Work in Process Inventory $74,000; debit Wages Expense $33,000.
C. Debit Work in Process Inventory $97,000; debit Wages Expense $10,000.
D. Debit Work in Process Inventory $107,000.
E. Debit Work in Process Inventory $97,000; debit Factory Overhead $10,000.
