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Student: ___________________________________________________________________________

82. Which of the following five types of products is least likely to be produced in a
process manufacturing system?

A. Compact disks.
B. Slacks for casual wear.
C. Baseball hats.
D. Calculators.
E. Oil paintings.
83. Which of the following characteristics does not usually apply to process
manufacturing 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. In a multistep process, there will be multiple Goods in Process accounts.

84. An expression of the activity of a process as the number of units that would have
been processed during a period if all effort had been applied to units that were
started and finished during the period is called:

A. Manufacturing overhead.
B. Units in process.
C. A job cost sheet.
D. Equivalent units of production.
E. Process cost summary.
85. Equivalent units of production are equal to:

A. The number of units that could have been completed if all effort had been applied
to units that were started and completed that period.
B. The number of finished units actually produced that period.
C. The number of units introduced into the process that period.
D. The number of units still in process that period.
E. Physical units that were completed this period from all effort being applied to
them.
86. Which of the following is not one of the four steps in accounting for production
activity in a period?

A. Determine over- or underapplied overhead.

B. Analyze the physical flow of units.
C. Analyze equivalent units.
D. Determine cost per equivalent unit.
E. Prepare a cost reconciliation.

88. A department had 12,500 units that were 20% complete in beginning Goods in
Process Inventory. During the current period 60,000 units were transferred in.
Ending Goods in Process Inventory was 15,000 units that were 70% complete.
Assume this company uses the weighted-average method of process costing and
direct material is added uniformly throughout the process. What are the equivalent
units produced with respect to direct material?

A. 65,500
B. 57,500
C. 37,000
D. 47,500
E. 68,000

90. A system of accounting in which the costs of each process are accumulated
separately and then assigned to the units of product that passed through the
process is a:

A. General cost accounting system.

B. Process cost accounting system.
C. Job order cost accounting system.
D. Manufacturing cost accounting system.
E. Goods in process accounting system.

91. Which of the following characteristics applies to process cost accounting and not to
job order cost accounting?

A. Use of a predetermined overhead rate.

B. Identifiable lots of production.
C. Equivalent units of production.
D. Labor time ticket for each employee.
E. Use of a single Goods in Process account.
92. A company that applies process costing is most frequently characterized by:

A. Low standardization and high production volume.

B. Custom orders and homogeneous products.
C. Repetitive production and heterogeneous products.
D. Repetitive production and low production volume.
E. Homogeneous product and high production volume.
93. 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.

95. Direct material costs are recorded:

A. Indirectly to Goods in Process account.

B. Indirectly to a Finished Goods account.
C. Directly to a Goods in Process account.
D. Directly to a Finished Goods account.
E. Directly to a Cost of Goods Sold account.
96. 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 Goods in Process Inventory and a credit to Accounts Payable.

97. Which of the following journal entries correctly records the current month's activity
where $60,000 of direct material and $17,000 of indirect materials were used in the
production process?

A.

B.

C.

D.

E.

98. Which of the following pair of journal entries correctly records the current month's
activity where $125,000 of raw material was purchased for cash, and $75,000 of
direct material and $30,000 of indirect materials were used in the production
process?

A.

B.

C.

D.

E.

99. Which of the following pair of journal entries correctly records the current month's
activity where $250,000 of raw material was purchased for cash and $150,000 of
direct material and $60,000 of indirect materials were used in the production
process?

A.

B.

C.

D.

E.

100.Direct labor and indirect labor are recorded, respectively, to:

A. Factory Overhead and Goods in Process.

B. Goods in Process and Finished Goods.
C. Finished Goods and Goods in Process.
D. Goods in Process and Factory Overhead.
E. Cost of Goods Sold and Finished Goods.
101.In a process costing operation, the direct labor of a production department
includes:

A. All labor used exclusively by that department, even if the labor is not applied to
the product itself.
B. All labor used exclusively by that department, but only if the labor is applied to
the product itself.
C. All labor for that department, including labor for services that help more than one
production department, such as clerical, repair, and computer technicians.
D. Only labor that helps more than one production department, such as clerical,
repair, and computer technicians.
E. Only that labor that is recorded in the Factory Payroll account.

102.Which of the following pair of journal entries correctly records the current month's
activity where the company had $42,060 in total factory labor costs that were paid
in cash with $32,400 of this total for direct labor?

A.

B.

C.

D.

E.

104.After posting all actual factory overhead and applying factory overhead to
production departments in a process costing system:

A. There will never be underapplied overhead.

B. There will never be overapplied overhead.
C. There will always be underapplied overhead.
D. There will always be overapplied overhead.
E. There may be over or underapplied overhead.
105.Hou Company applies factory overhead to its production departments on the basis
of 90% of direct labor costs. In the Assembly Department, Hou had $125,000 of
direct labor cost, and in the Finishing Department, Hou had $35,000 of direct labor
cost. The entry to apply overhead to these production departments is:

A.

B.

C.

D.

E.

106.Assume that the Hood River Juice Company applies factory overhead to its
production departments on the basis of 65% of direct labor costs. Direct labor in the
Squeezing Department was $80,000 and direct labor in the Filtering Department
was $12,000. The entry to apply overhead to these production departments is:

A.

B.

C.

D.

E.

107.To compute an equivalent unit of production, one must be able to reasonably

estimate:

A. The percentage of completion.

B. Units completed.
C. Units started and completed.
D. Direct labor cost.
E. Materials cost.

109.A company's beginning work in process inventory consisted of 20,000 units that
were 1/5 complete with respect to direct labor. These beginning units were
completed and another 90,000 units were started during the current period. Of
those started, 60,000 were finished and the remaining 30,000 were one-third
complete at the end of the period. Using the weighted-average method, the
equivalent units of production were:

A. 60,000
B. 74,000
C. 76,000
D. 86,000
E. 90,000

111.The following data are available for a company's manufacturing activities:

Assume the company uses the weighted-average inventory method. If materials are
added when the production process begins and direct labor is applied uniformly
throughout the process, what are the equivalent units for direct materials and for
direct labor, respectively?

A. 21,000; 23,000
B. 26,000; 19,250
C. 21,000; 19,250
D. 26,000; 23,000
E. 19,250;19,250

113.At the beginning of the recent period, there were 900 units of product in a
department, one-third completed. These units were finished and an additional 5,000
units were started and completed during the period. 800 units were still in process
at the end of the period, one-fourth completed. Using the weighted-average
valuation method, the equivalent units produced by the department were:

A. 6,700 units.
B. 5,900 units.
C. 5,800 units.
D. 6,100 units.
E. 8,500 units.

117.A company uses a process cost accounting system. Its Sewing Department's
beginning inventory consisted of 50,000 units (1/4 complete with respect to direct
labor and overhead). The Sewing Department started and finished 120,000 units
this period. Its ending inventory consists of 40,000 units (1/4 complete with respect
to direct labor and overhead). All direct materials are added at the beginning of the
process. Under the weighted-average inventory valuation method, what are the
equivalent units of production for the Sewing Department for direct materials and
for direct labor and overhead, respectively?

A. 210,000;120,000
B. 210,000; 180,000
C. 167,500; 167,500
D. 160,000; 162,500
E. 160,000; 167,500

122.A department had 600 units which were 40% complete in beginning Goods in
Process Inventory. During the current period, 7,000 units were transferred out.
Ending Goods in Process Inventory was 800 units which were 40% complete.
Using the weighted-average method, what are the equivalent units produced if all
direct material and direct labor are added uniformly throughout the process?

A. 7,080
B. 6,960
C. 7,320
D. 7,680
E. 7,800

124.A department had 65 units which were 20% complete in beginning Goods in
Process Inventory. During the current period, 77 units were transferred out. Ending
Goods in Process Inventory was 30 units which were 20% complete. Using the
weighted-average method, what are the equivalent units produced if all direct
material and direct labor are added uniformly throughout the process?

A. 83
B. 70
C. 100
D. 77
E. 107

126.The Filtering Department started the current month with beginning goods in process
inventory of $55,000. During the month, it was assigned the following costs: direct
materials, $77,000; direct labor, $44,000; and factory overhead, 20% of direct
material cost. Also, inventory with a cost of $66,000 was transferred out of the
department to the next phase in the process. The ending balance of the Goods in
Process Inventory account for the Filtering Department is:

A. $66,000
B. $110,000
C. $132,000
D. $125,400
E. $191,400

128.During the current period, Department A finished and transferred 50,000 units to
Department B. Of the 50,000 units, 20,000 were one-fifth complete at the beginning
of the period and 30,000 were started and completed during the period. Also during
the period, 10,000 units were started but brought only to a stage of being threefifths completed. If the weighted-average method is used and $14,000 of overhead
was charged to Department A during the period, how much overhead should be
allocated to the ending goods in process inventory?

A. $1,615
B. $3,250
C. $2,600
D. $2,500
E. $1,500

130.A company uses a process cost accounting system and the weighted-average
inventory valuation method. Its Assembly Department's beginning inventory
consisted of 50,000 units, three-fourths complete with respect to direct labor and
overhead. The department started and finished 127,500 units this period. The
ending inventory consists of 40,000 units that are one-fourth complete with respect
to direct labor and overhead. All direct materials are added at the beginning of the
process. Goods in Process included direct labor costs of $30,000 and overhead
costs of $40,000 for the period. The overhead cost per equivalent unit is:

A. $0.126
B. $0.160
C. $0.178
D. $0.213
E. $0.373

131.The following is an account for a production department, showing its costs for one
month:

Assume that materials are added at the beginning of the production process and
that direct labor and overhead are applied uniformly. If the units in ending goods in
process inventory cost $4,590, and the started and completed units cost $41,850,
what was the cost of completing the units in the beginning goods in process
inventory?

A. $12,150
B. $2,160
C. $7,560
D. $54,000
E. $37,260

132.Que Corporation uses a process cost accounting system. The company

manufactured certain goods at a cost of $800 and sold them on credit to Are
Corporation for $1,075. The complete journal entry to be made by Que at the time
of this sale is:

A.

B.

C.

D.

E.