1. Which of the following products is least likely to be produced in a process operations system?

Compact disks

Slacks for casual wear

Baseball hats

Calculators

Custom cabinets

2. Which of the following products is most likely to be produced in a process operations system?

Airplanes

Cereal

Bridges

Designer bridal gowns

Custom cabinets

3. Which of the following characteristics does not usually apply to process operations systems?

Each unit of product is separately identifiable.

Partially completed products are transferred between processes.

Different managers are responsible for different processes.

The output of all processes except the final process is an input to the next process.

Costs are computed using equivalent units.

4. Clarksen Company uses a process costing system. The company requisitioned $93,000 of materials for Department A and $67,000 of materials for Department D. The entry to record the use of the direct materials by these two departments is:

Debit Raw Materials Inventory $160,000; credit Accounts Payable $160,000.

Debit Work in Process Inventory—Dept. A $93,000; debit Work in Process Inventory—Dept. D $67,000; credit Raw Materials Inventory $160,000.

Debit Factory overhead $160,000; credit Raw Materials Inventory $160,000.

Debit Raw Materials Inventory—Dept. A $93,000; debit Raw Materials Inventory—Dept. D $67,000; credit Work in Process Inventory $160,000.

Debit Work in Process Inventory—Dept. A $93,000; debit Work in Process Inventory—Dept. D $67,000; credit Accounts Payable $160,000.

5. Which of the following characteristics applies to process costing but not to job order cost accounting?

Use of a predetermined overhead rate.

Identifiable units of production.

Equivalent units of production.

Determining cost of goods manufactured.

Use of a single Work in Process Inventory account

6. A key idea in process costing that refers to the number of units that could have been started and completed given the costs incurred during the period is known as:

Manufacturing overhead.

Units in process.

A job cost sheet.

Equivalent units of production.

Process cost summary.

7. Equivalent units of production are equal to:

The number of units that could have been started and completed given the costs incurred during the period.

The number of finished units actually produced during a period.

The number of units started into the process during a period.

The number of units still in process at the end of a period.

Physical units that were started and completed during a period.