Reference no: EM133166767

Questions -

Q1. Consider the following manufacturing costs: Direct labor $4,000; Direct materials $5,000; and Factory overhead $8,000. What is the conversion cost amount?

A. $12,000

B. $8,000

C. $9,000

D. $5,000

Q2. Which of the following is considered a factory overhead cost?

A. Direct materials

B. Direct labor

C. Factory power

D. All of the above

Q3. Which of the following represents prime costs?

A. Direct materials and direct labor

B. Direct materials and indirect labor

C. Direct materials and factory overhead

D. Indirect labor and selling expenses

Q4. Direct materials, direct labor, and factory overhead represent which of the following cost?

A. Manufacturing costs

B. Period costs

C. All of the above

D. None of the above

Q5. The cost of direct materials, direct labor, and factory overhead that have entered the manufacturing process but not yet completed is:

A. Materials inventory

B. Finished goods inventory

C. Work in process inventory

D. None of the above

Q6. Direct labor and direct materials represent conversion costs.

True

False

Q7. Period costs consist of direct materials and selling expenses.

True

False

Q8. Finished goods inventory consists of completed products.

True

False

Q9. The cost of electricity is an example of cost that is included in Factory Overhead.

True

False

Q10. Advertising expense is generally an example of period cost.

True

False