31. In either a job order or a process cost system, credits to the Materials Inventory account represent:
A. The cost of materials purchased during the period.
B. The cost of materials relating to finished goods.
C. The cost of unused materials returned to the inventory.
D. The cost of materials placed into production.
32. When either a job order cost system or a process cost system is in use, the Direct Labor account is debited:
A. When work is performed, even if not paid immediately.
B. When direct labor charges are assigned to work in process.
C. When employees are paid.
D. Instead of using a Salaries Expense account.
33. When either a job order cost system or a process cost system is in use, the Direct Labor account is credited:
A. When work is performed, even if not paid immediately.
B. When direct labor charges are assigned to work in process.
C. When employees are paid.
D. Instead of using a Salaries Expense account.
34. Equivalent units are usually computed for:
A. Only direct materials.
B. Only direct labor.
C. Only factory overhead.
D. All three of the above.
35. Which of the following is not a characteristic of a process cost system?
A. The costs incurred in each process are accumulated in separate Work-in-Process Inventory accounts.
B. It is suitable for mass-produced operations.
C. Costs are accumulated separately for each unit of production as it moves through the factory.
D. The cost of a finished unit is the sum of the unit costs of performing each manufacturing process.
36. A process cost system differs from a job order cost system in that:
A. There is no need for overhead application rates in process cost systems.
B. Process cost systems are used primarily in service industries, whereas job order cost systems are used in manufacturing operations.
C. Per-unit costs are not computed in process cost systems.
D. Process cost systems are used when production involves large volumes of standardized products, whereas job cost systems are used when each job or batch of products is uniquely different.
Duffy Brothers manufactures a single product using a process involving (1) mixing ingredients and (2) a subsequent packaging operation. Duffy uses a process cost system to account for the flow of costs through its production process.
37. Refer to the information above. In the production process described, what is the Work-in-Process Inventory: Packaging Department debited for?
A. Costs transferred from the Work-in-Process Inventory: Mixing Department only.
B. The cost of materials, direct labor, and overhead applicable to the packaging operation only.
C. Costs transferred from the Work-in-Process Inventory: Mixing Department, as well as materials, direct labor, and overhead applicable to the packaging operation.
D. Costs transferred to the Finished Goods Inventory.
38. Refer to the information above. In Duffy's operation, the Finished Goods Inventory account is debited for:
A. The cost of units transferred directly from the Mixing Department.
B. The cost of units transferred directly from the Packaging Department.
C. The cost of units transferred directly from both the Mixing Department and the Packaging Department.
D. The cost of the units sold.
39. In most process cost systems, per-unit costs are determined by:
A. Dividing the number of units completed during the period by the total manufacturing costs incurred during the period.
B. Dividing the total manufacturing costs incurred during the period by the number of units worked on during the period.
C. Dividing the total manufacturing costs incurred during the period by the equivalent number of units completed during the period.
D. Unit costs cannot be determined in a process cost system.
40. In a process cost system, costs flow from one Work-in-Process Inventory account to the next in the same sequence as:
A. Units flow through production.
B. In a LIFO periodic inventory system.
C. Shipped to customers.
D. In a job order cost system.