1. A cost center in a process cost system is a:

a.	Unit to which costs are accumulated.
b.	Job.
c.	Specific product.
d.	Employee.

2. Which of the following firms is least likely to use process costing?

a.	A yogurt manufacturer.
b.	A refiner of petroleum products.
c.	A computer manufacturer.
d.	A manufacturer of concrete products.

3. Process costing techniques should be used in assigning costs to products:

a.	If the product is manufactured on the basis of each order received.
b.	In all manufacturing situations.
c.	When production is only partially completed during the accounting period.
d.	If the product is composed of mass-produced homogeneous units.

4. Which of the following characteristics applies to process costing?

a.	Differentiated products are provided on a special order basis.
b.	Cost are accumulated by department.
c.	Cost are accumulated by jobs.
d.	Direct labor workers must keep detailed records as to the jobs on which they worked.

5. Characteristics that job order costing and process costing have in common include all of the following except:

a.	The use of predetermined factory overhead rates.
b.	Each can be used by service firms.
c.	The costs of materials and labor are charged to the departments where they are incurred.
d.	The primary objective is to complete a unit cost for products.

6. A true process costing system could make use of each of the following except:

a.	Predetermined factory overhead rates.
b.	Individual jobs.
c.	Cost centers.
d.	General ledger control accounts.

7. All of the following could be included in the cost of a product located in the final production department of a multi-step process except:

a.	The costs of materials, labor and overhead identifiable with that department.
b.	Marketing and distribution costs.
c.	The costs of service departments that have been allocated to production departments.

8. Daniel LLC incurred cost of $43,000 for material, $26,000 for labor, and $23,000 for factory overhead. There was no beginning or ending work in process. 5,000 units were completed and transferred out. The unit cost for labor is:

a.	$ 8.60
b.	$ 5.20
c.	$ 18.40
d.	$ 4.60

9. Daniel LLC incurred cost of $43,000 for material, $26,000 for labor, and $23,000 for factory overhead. There was no beginning or ending work in process. 5,000 units were completed and transferred out. The cost per unit is:

a.	$ 8.60
b.	$ 5.20
c.	$ 18.40
d.	$ 4.60

10. Using the average cost method of process costing, the computation of manufacturing cost per equivalent unit considers:

a.	Current costs only.
b.	Current costs plus cost of beginning work in process inventory.
c.	Current costs plus cost of ending work in process inventory.
d.	Current costs less cost of beginning work in process inventory.

11. The number of whole units that could have been completed during a period, using the production costs incurred during that period is called:

a.	Standard production.
b.	Equivalent production.
c.	Total units.
d.	Manufactured units.

12. A characteristic of a process cost accounting system is:

a.	Costs are accumulated by order.
b.	Work in process inventory is restated in terms of equivalent production.
c.	It is used by a company manufacturing custom machinery.
d.	None of these is correct.

13. All of the following are characteristics of a production report except:

a.	It includes the number of units completed during the period.
b.	It includes the costs incurred by the department during the period.
c.	It includes the number of units in ending work-in-process and the estimated stage of completion.
d.	The department manager completes the report on a monthly basis.

14. The cost of an equivalent unit is equal to:

a.	A unit of work in process inventory.
b.	The amount of cost necessary to start a unit of production into work in process.
c.	The cost necessary to complete one unit of production.
d.	A unit of work in process inventory.

15. The production report for Phillips Industries, which had no beginning inventory at the beginning of the month, included the following information for September:

	Number of Units	Completion
Units started in production	81,000
Units transferred to finished goods	72,000

If the equivalent units for Septembers production were 77,400, how many units were in process at the end of the month, and how complete were they?

a.	9,000; 30%
b.	9,000; 60%
c.	3,000; 90%
d.	6,000; 90%