1. The wages paid to a factory equipment maintenance worker are:

a. a product cost, but not part of factory overhead

b. a product cost that is also part of factory overhead

c. neither a product cost nor part of factory overhead

2. Manufacturing overhead costs would include:

a. the salary paid to an employee in the accounting department

b. commissions paid to salespeople

c. property taxes on the corporate office building

d. supplies used in the factory lunchroom

3. The salary paid to a factory assembly line worker would be classified as a(n):

a. administrative expense c. manufacturing overhead cost

b. direct labor cost d. selling expense

4. Which of the following should be included as part of manufacturing overhead in the production of textbooks?

a. The amount paid to the individuals who set up machines for a product run

b. The cost of ink used to produce the books

c. The cost of travel for salespeople

d. The cost of property taxes on factory equipment

5. Which account would be debited when direct labor is added (applied) to a job?

a. the Cost of Goods Sold account c. the Finished Goods Inventory account

b. the Work in Process Inventory account d. the Manufacturing Overhead account

6. Which account would be debited for the cost of thread and staples requisitioned for use in production of a sofa?

a. Work in Process Inventory c. Raw Materials Inventory

b. Finished Goods Inventory d. Manufacturing Overhead

7. The account that is credited when depreciation is recorded on factory assets is:

a. depreciation expense c. Accumulated Depreciation

b. Work in Process d. Overhead

8. The Cost of Goods Manufactured represents:

a. the amount of product cost charged to Work in Process Inventory during the period

b. the cost of goods completed and transferred from Work in Process Inventory to Finished Goods Inventory during the period

c. the amount of product costs added to jobs during the period

d. the cost of goods transferred from Finished Goods Inventory to Cost of Goods Sold during the period

9. When the overhead account has a debit balance at the end of the month, we say that overhead was overapplied during the period.

a. True b. False

10. During the month of Sept at Keller Co., goods costing $300,000 were sold on account at 50% more than cost. Which of the following entries or sets of entries would be recorded?

a. debit Cost of Goods Sold for $300,000, debit Net Income for $150,000, and credit Sales for $450,000

b. debit Cost of Goods Sold for $300,000 and credit Finished Goods Inventory for $300,000 AND debit Accounts Receivable for $450,000 and credit Sales for $450,000

c. debit Accounts Receivable for $300,000 and credit Sales for $300,000

d. debit Cost of Goods Sold for $300,000 and credit Work in Process Inventory for $300,000 AND debit Accounts Receivable for $450,000 and credit Sales for $450,000