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A process cost accounting system is most appropriate when similar products are mass-produced. the focus of attention is on a particular job or order. individual products are custom made to the specification of customers. a variety of different products are produced, each one requiring different types of materials, labor, and overhead. |
similar products are mass-produced. |
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A characteristic of products that are mass-produced in a continuous fashion is that they are grouped in batches. the products are identical or very similar in nature. they are produced at the time an order is received. their costs are accumulated on job cost sheets. |
the products are identical or very similar in nature. |
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A process cost system would be used for all of the following products except soft drinks. computer chips. chemicals. motion pictures. |
motion pictures. |
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Differences between a job order cost system and a process cost system include all of the following except the documents used to track costs. unit cost computations. point at which costs are totaled. flow of costs. |
flow of costs. |
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In a process cost system, a Work in Process account is maintained for each process. one Work in Process account is maintained for all the processes, similar to a job order cost system. a materials requisition must identify the job on which the materials will be used. a Work in Process account is maintained for each product. |
a Work in Process account is maintained for each process. |
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Which of these best reflects a distinguishing factor between a job order cost system and a process cost system? The manufacturing cost elements included. The detail at which costs are calculated. The time period each covers. The number of work in process accounts. |
The number of work in process accounts. |
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Which of the following is a true statement about process cost systems? In process cost systems, costs are summarized on job cost sheets. Unit costs are not computed in process cost systems. In process cost systems, costs are accumulated but not assigned. A process cost system has one work in process account for each process. |
A process cost system has one work in process account for each process. |
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In a process cost system, unit costs are determined using a denominator of units produced during the period. denominator of units produced for the job. numerator of costs of each job. denominator of units produced for the day. |
denominator of units produced during the period. |
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In process cost accounting, manufacturing costs are summarized on a job order cost sheet. process order cost sheet. production cost report. manufacturing cost sheet. |
production cost report. |
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Which of the following manufacturing cost elements occurs in a process cost system? Manufacturing overhead. All of these. Direct materials. Direct labor. |
All of these. |
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In a process cost system, product costs are summarized: on job cost sheets. on production cost reports. when the products are sold. after each unit is produced. |
on production cost reports. |
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When manufacturing overhead costs are assigned to production in a process cost system, they are debited to a Work in Process account. cost of Goods Sold. a Manufacturing Overhead account. the Finished Goods Inventory account. |
a Work in Process account. |
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A product requires processing in two departments, the Baking Department and then the Packaging Department, before it is completed. Costs transferred out of the Baking Department will be transferred to: Manufacturing Overhead. Cost of Goods Sold. Work in Process—Packaging Department. Finished Goods Inventory. |
Work in Process—Packaging Department. |
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Which of the following would not appear as a debit in the Work in Process account of a second department in a two stage production process? Materials used. Overhead applied. Labor assigned. Cost of products transferred out. |
Cost of products transferred out. |
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Materials requisitions are: used more frequently by latter stage production departments. not used in process costing. generally used more frequently in process costing than job order costing. generally used less frequently in process costing than job order costing. |
generally used less frequently in process costing than job order costing. |
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A primary driver of overhead costs in continuous manufacturing operations is: machine maintenance dollars. direct labor hours. direct labor dollars. machine hours. |
machine hours. |
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Equivalent units are calculated by multiplying the percentage of work done by the equivalent units of output. dividing physical units by the percentage of work done. dividing equivalent units by the percentage of work done. multiplying the percentage of work done by the physical units. |
multiplying the percentage of work done by the physical units. |
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It is necessary to calculate equivalent units of production in a department because the physical units in the department are always 100% complete. some units worked on in the department are not fully complete. at times a department may use a job order cost system and then switch to a process cost system. a physical count of units is impossible. |
some units worked on in the department are not fully complete. |
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