Question : 33. Which company would most likely use a process costing system? A. Bic : 1229524

33. Which company would most likely use a process costing system? 
A. Bic Pens.
B. Pepsi Cola.
C. Mars Candy.
D. All three.

34. In either a job order or a process costing system, credits to the Materials Inventory account represent: 
A. The cost of materials purchased during the period.
B. The cost of materials relating to finished goods.
C. The cost of unused materials returned to the inventory.
D. The cost of materials placed into production.

35. When either a job order costing system or a process costing system is in use, the Direct Labor account is debited: 
A. When work is performed, even if not paid immediately.
B. When direct labor charges are assigned to work in process.
C. When employees are paid.
D. Instead of using a Salaries Expense account.

36. When either a job order costing system or a process costing system is in use, the Direct Labor account is credited: 
A. When work is performed, even if not paid immediately.
B. When direct labor charges are assigned to work in process.
C. When employees are paid.
D. Instead of using a Salaries Expense account.

37. Equivalent units are usually computed for: 
A. Only direct materials.
B. Only direct labor.
C. Only factory overhead.
D. Direct materials, direct labor, and factory overhead costs.

38. Which of the following is not a characteristic of a process costing system? 
A. The costs incurred in each process are accumulated in separate Work-in-Process Inventory accounts.
B. It is suitable for mass-produced operations.
C. Costs are accumulated separately for each unit of production as it moves through the factory.
D. The cost of a finished unit is the sum of the unit costs of performing each manufacturing process.

39. A process costing system differs from a job order costing system in that: 
A. There is no need for overhead application rates in process costing systems.
B. Process costing systems are used primarily in service industries, whereas job order costing systems are used in manufacturing operations.
C. Per-unit costs are not computed in process costing systems.
D. Process costing systems are used when production involves large volumes of standardized products, whereas job costing systems are used when each job or batch of products is uniquely different.

Duffy Brothers manufactures a single product using a process involving (1) mixing ingredients and (2) a subsequent packaging operation. Duffy uses a process costing system to account for the flow of costs through its production process.

40. In the production process described, what is the Work in Process Inventory: Packaging Department debited for? 
A. Costs transferred from the Work in Process Inventory: Mixing Department only.
B. The cost of materials, direct labor, and overhead applicable to the packaging operation only.
C. Costs transferred from the Work in Process Inventory: Mixing Department, as well as materials, direct labor, and overhead applicable to the packaging operation.
D. Costs transferred to the Finished Goods Inventory.

41. In Duffy’s operation, the Finished Goods Inventory account is debited for: 
A. The cost of units transferred directly from the Mixing Department.
B. The cost of units transferred directly from the Packaging Department.
C. The cost of units transferred directly from both the Mixing Department and the Packaging Department.
D. The cost of the units sold.

42. In most process costing systems, per-unit costs are determined by: 
A. Dividing the number of units completed during the period by the total manufacturing costs incurred during the period.
B. Dividing the total manufacturing costs incurred during the period by the number of units worked on during the period.
C. Dividing the total manufacturing costs incurred during the period by the equivalent number of units completed during the period.
D. Unit costs cannot be determined in a process costing system.