5. The cost of a product includes:

	a.	period costs.
	b.	direct material, direct labor and overhead costs.
	c.	selling costs, administrative costs, and cost of goods sold.
	d.	indirect material, indirect labor, and administrative costs.

6. Overheard costs may include:

		indirect labor costs.
		indirect material costs.
		factory supplies that cannot be directly traced to a cost object.
		All of the above.

7. Period costs can be described as

	a.	Costs reported in the Cost of Goods Sold on the Income Statement.
	b.	Costs that vary in total depending on the amount of units produced.
	c.	Costs carried in inventory on the balance sheet until a product is sold.
	d.	Costs that are expensed in the period of time in which they are incurred.

8. During the month of January, Gonzalez Company had total manufacturing costs of $121,000. Direct labor costs of $44,000 was incurred along with $33,000 of manufacturing overhead costs in the month as well. The direct material beginning inventory on January 1 was $3,300 less than the direct material ending inventory on January 31.

Question: Calculate the cost of direct materials used during the month of January.

		$88,000 direct materials used
		$44,000 direct materials used
		$47,700 direct materials used
		$30,700 direct materials used