14. A process cost system would be used for all of the following products except...

answer choices

A) chemicals

B) computer chips

C) soft drinks

D) motion pictures

15. In order to compute the physical unit flow, a company must first compute unit production costs.

answer choices

TRUE

FALSE

16. Which of the following items is NOT characteristic of a process costing system?

answer choices

A) Once production begins, it continues until the finished product emerges

B) The products produced are heterogeneous in nature

C) The focus is on continually producing homogeneous products

D) When the finished product emerges, all units have precisely the same amount of materials, labour and overhead

17. In a process cost system, the flow of cost is:

answer choices

A) work in process, cost of goods sold, finished goods

B) finished goods, work in process, cost of goods sold

C) finished goods, cost of goods sold, work in process

D) work in process, finished goods, cost of goods sold

18. Conversion costs are the sum of:

answer choices

A) Fixed and variable overhead costs

B) labor costs and overhead costs

C) direct material costs and overhead costs

D) Direct labour and indirect labour costs

19 Indicate which of the following statement is NOT correct?

answer choices

A) both a job order and process cost system track the same three manufacturing cost elements - Direct material, Direct labour and manufacturing overhead

B) A job order cost system uses only one work in process account, whereas a process cost system uses multiple work in process account

C) Manufacturing costs are accumulated the same way in a job order and in a process cost system

D) Manufacturing costs are assigned the same way in a job order and in a process cost system

20. Lan Largo Co. has unit costs of RM10 for materials and RM30 for conversion costs. If there are 2,500 units in ending work in process, 40% complete as to conversion costs and fully complete as to materials cost, the total cost assignable to the ending work in process inventory is:

answer choices

A) RM45,000

B) RM55,000

C) RM75,000

D) RM100,000