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....

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.

94. A hybrid costing system would be most appropriate when:
A. A manufacturer is able to standardize processes while at the same time attempting to cater to individual customer needs.
B. Large quantities of identical products are being produced.
C. The volume of production is low and costs are high.
D. There is no standardization of units of production.
E. The volume of production is low and standardized products are produced.

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?

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?

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?

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.