31. A key idea in process costing that refers to the number of units that could have been started and completed given the costs incurred during the period is known as: A. Manufacturing overhead. B. Units in process. C. A job cost sheet. D. Equivalent units of production. E. Process cost summary.

32. Equivalent units of production are equal to: A. The number of units that could have been started and completed given the costs incurred during the period. B. The number of finished units actually produced during a period. C. The number of units started into the process during a period. D. The number of units still in process at the end of a period. E. Physical units that were started and completed during a period.

33. Which of the following is the best explanation for why it is necessary to calculate equivalent units of production in a process costing environment? A. In most manufacturing environments, it is not possible to conduct a physical count of units. B. Companies often use a combination of a process costing and job order costing systems. C. In most process costing systems, direct materials are added at the beginning of the process while conversion costs are added evenly throughout the manufacturing process. D. All of the work to make a unit 100% complete and ready to move to the next stage of production or to finished goods inventory may not have been completed in a single time period. E. In most cases, there is no difference between physical units and equivalent units of production.

34. Using conversion cost per equivalent unit is appropriate for many business that use process costing because: A. Direct materials and direct labor are usually entered into the production process at the same rate. B. All manufacturing costs are entered into the production process in the same period. C. Equivalent cost per unit is not sufficient measurement of production activity. D. The weighted average method of calculating equivalent units requires it. E. Direct labor and factory overhead enter the production process at the same rate.

35. Which of the following is not one of the four steps in accounting for production activity and assigning costs during a period under a process cost system? A. Determine over or underapplied overhead. B. Determine the physical flow of units. C. Compute the equivalent units of production. D. Compute the cost per equivalent unit of production. E. Assign and reconcile costs.