21. Process costing would be suitable for:
A. Automobile repair.
B. Production of television sets.
C. Boat building.
D. Kitchen remodeling.
22. All of the following are characteristics of the products of process costing except:
A. High volume.
B. Different amounts of direct materials.
C. Identical amounts of direct materials.
D. Repetitive operations.
23. A summary of work completed with related unit and total costs in a process costing system is called a(n):
A. Equivalent units production form.
B. Cost requisition form.
C. Summary of conversion costs.
D. Production cost report.
24. The best cost system to use for a company producing a continuous stream of similar items would be a:
A. Job order system.
B. Process costing system.
C. Production costing system.
D. No cost system is required when jobs are similar.
25. Process cost systems:
A. Are good when companies produce homogeneous units.
B. May have work-in-process accounts for each department.
C. Use equivalent units of production.
D. All of the above.
26. If 8,000 units were in beginning inventory, 26,000 units were started and 6,000 units were in the ending inventory, how many units were completed and transferred out?
A. 40,000
B. 26,000
C. 28,000
D. 24,000
27. Equivalent units of production are:
A. A measure representing the percentage of a unit's cost that has been completed.
B. May be computed separately for each input added during production.
C. May be assigned to beginning work-in-process or ending work-in-process.
D. All of the above.
28. A typical production cost report will contain all of the following except:
A. The number of equivalent units.
B. The total cost of production.
C. The costs per equivalent units.
D. The costs assigned to each job.
29. Per-unit costs:
A. Are relevant only when a company is engaged in manufacturing activities.
B. Are determined in job order cost systems but cannot be computed when a process cost system is in use.
C. Are relevant in manufacturing, merchandising, and service industries, regardless of the type of cost accounting system in use.
D. Are determined by relating manufacturing costs to the number of units sold.
30. Which company would most likely use a process costing system?
A. Bic Pens.
B. Pepsi Cola.
C. Mars Candy.
D. All three.