1.Product costs are integral to the production of a product and are expensed in the period in which the:

a.costs are incurred.

b.costs are paid.

c.related products are sold.

d.related products are produced.

2.Which of the following is an example of a product cost?

a.Assembly line worker's wages

b.Interest expense

c.Telephone expense

d.Depreciation of office furniture

3.Which of the following is not a manufacturing overhead cost?

a.Rent of factory

b.Direct materials

c.Indirect labour

d.Factory cleaner's salary

4.Assume direct materials, direct labour and factory overhead for the period total $450 000. If work in process at the start is $35 000 and work in process at the end is $50 000, the cost of goods manufactured is:

a.$435 000

b.$485 000

c.$465 000

d.$450 000