Question : Multiple choice 26.Which one of the following a costing system commonly : 1302706

Multiple choice

26.Which one of the following is a costing system commonly used by companies that produce a large number of homogeneous units in a continuous production process?

A.Unit costing system

B.Job-order system

C.Incremental analysis cost system

D.Process costing system

27.Which of the following companies will most likely use a process costing system?

A.A law office

B.A custom home builder

C.A car repair business

D.A food manufacturer

28.In which of the following industries are companies least likely to use a process costing system?

A.Canned vegetables

B.Wooden pencils

C.Shampoo

D.Office cleaning services

29.Which of the following describes the differences between job-order and process costing?

A.Job-order costing is used in financial accounting, while process costing is used in managerial accounting.

B.Job-order costing can only be used by manufacturers; only service enterprises use process costing.

C.Job-order costing is voluntary, while process costing is required by GAAP.

D.Job-order costing traces costs to jobs, while process costing traces costs to departments and averages the costs among the units worked on during the period.

30.In a process costing system with three departments, when items are sold, the cost of the items is moved from

A.Work in Process to Finished Goods.

B.Work in Process to Cost of Goods Sold.

C.Cost of Goods Sold to Finished Goods.

D.Finished Goods to Cost of Goods Sold.

31.In a process costing system, when raw materials are put into process, the cost of the materials is moved from

A.Work in Process to Finished Goods.

B.Finished Goods to Cost of Goods Sold.

C.Raw Materials to Work in Process.

D.Finished Goods to Work in Process.

32.Which of the following costs is not a cost added to the Work in Process account in a process costing system?

A.Manufacturing overhead

B.Direct materials

C.Direct labor

D.Cost of goods sold

33.Which of the following sequences describes the typical flow of costs in a company that is using process costing?

A.Raw Materials Inventory, Work in Process, Finished Goods, Cost of Goods Sold

B.Work in Process, Finished Goods, Raw Materials Inventory, Cost of Goods Sold

C.Raw Materials Inventory, Cost of Goods Sold, Work in Process, Finished Goods

D.Finished Goods, Raw Materials Inventory, Work in Process, Cost of Goods Sold

34.Which one of the following is true of the manufacturing operations of a company using process costing?

A.A product typically must pass through two or more finished goods departments.

B.Manufacturing overhead and direct labor costs are referred to as conversion costs.

C.Transferred-in costs occur only in departments that have no direct labor costs.

D.Costs transferred in must equal total costs transferred out of each work in process department.

35.Conversion costs

A.are often assumed to be added at the beginning of the production process in each department.

B.are the sum of the direct materials and direct labor costs.

C.are rarely a part of the cost transferred out of a process department.

D.are often assumed to be added evenly throughout the process within a department.