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

Select one:

A.

$12,000

B.

$8,000

C.

$9,000

D.

$5,000

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

Select one:

A.

Direct materials

B.

Direct labor

C.

Factory power

D.

All of the above

3. Which of the following represents prime costs?

Select one:

A.

Direct materials and direct labor

B.

Direct materials and indirect labor

C.

Direct materials and factory overhead

D.

Indirect labor and selling expenses

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

Select one:

A.

Manufacturing costs

B.

Period costs

C.

All of the above

D.

None of the above

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

Select one:

A.

Materials inventory

B.

Finished goods inventory

C.

Work in process inventory

D.

None of the above

6. Direct labor and direct materials represent conversion costs.

Select one:

True

False

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

Select one:

True

False

8. Finished goods inventory consists of completed products.

Select one:

True

False

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

Select one:

True

False

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

Select one:

True

False