2.5 Review - The Process Costing System

The name given for the amount of work done during a period when using process costing is called which of the following?

Answer: Equivalent units of production The name assigned to the work done during a period when using process costing is equivalent units of production.

Which of the following products would probably not be made when using a process costing systems?

Answer: Pieces of furniture Pieces of furniture would most likely be produced in a job order costing environment. The other three would most likely be made in a process costoing environment.

That report when the production costs are summarized when using process costing is called which of the following?

Answer: Production report It is on the production report that the costs are summarized when using a process costing system.

Process costing is used for each of the following except:

Answer: When the costs of individual products can be isolated from each other

Which of the following situations would make process costing less complicated?

Answer: When there is no beginning or ending work-in process The easiest case of process costing is when there is no beginning or ending inventory. In that case, the total units made is divided into the total processing costs to find the cost per unit.