25. Which of the following products is least likely to beproduced in a process operations system?A. Compact disksB. Slacks for casual wearC. Baseball hatsD. CalculatorsE. Custom cabinets
26. Which of the following products is most likely to beproduced in a process operations system?A. AirplanesB. CerealC. BridgesD. Designer bridal gownsE. Custom cabinets
27. Which of the following characteristics does not usuallyapply to process operations systems?A. Each unit of product is separately identifiable.B. Partially completed products are transferred betweenprocesses.C. Different managers are responsible for differentprocesses.D. The output of all processes except the final process is an inputto the next process.E. Costs are computed using equivalent units.
28. Yamada Company applies factory overhead to its productiondepartments on the basis of 90% of direct labor costs. In theAssembly Department, Yamada had $125,000 of direct labor cost, andin the Finishing Department, Yamada had $35,000 of direct laborcost. The entry to apply overhead to these production departmentsis:A. Debit Factory Overhead—Assembly $112,500; debit FactoryOverhead—Finishing $31,500; credit Work in Process Inventory$144,000.B. Debit Factory Overhead $144,000; credit Work in ProcessInventory—Assembly $112,500; credit Work in Process—Finishing$31,500.C. Debit Factory Overhead $144,000; credit Factory Payroll$144,000.D. Debit Work in Process Inventory—Assembly $112,500; debit Work inProcess Inventory—Finishing $31,500; credit Factory Overhead$144,000.E. Debit Factory Payroll $144,000; credit Cash $144,000.
29. Clarksen Company uses a process costing system. The companyrequisitioned $93,000 of materials for Department A and $67,000 ofmaterials for Department D. The entry to record the use of thedirect materials by these two departments is:A. Debit Raw Materials Inventory $160,000; credit Accounts Payable$160,000.B. Debit Work in Process Inventory—Dept A $93,000; debit Work inProcess Inventory—Dept D $67,000; credit Raw Materials Inventory$160,000.C. Debit Factory overhead $160,000; credit Raw Materials Inventory$160,000.D. Debit Raw Materials Inventory—Dept A $93,000; debit RawMaterials Inventory—Dept D $67,000; credit Work in ProcessInventory $160,000.E. Debit Work in Process Inventory—Dept A $93,000; debit Work inProcess Inventory—Dept D $67,000; credit Accounts Payable$160,000.
30. Which of the following characteristics applies to processcosting but not to job order cost accounting?A. Use of a predetermined overhead rate.B. Identifiable units of production.C. Equivalent units of production.D. Determining cost of goods manufactured.E. Use of a single Work in Process Inventory account.
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