Directions: This exam contains seven sections. They are all weighted differently, so allocate your ume accordingly. Also, please make sure that you read and follow the directions for each section I. Modified True / False (30 points, 2 points each). There are fifteen statements below. Some are true and some are false. Please write the word "true" or "false" in the space provided. If the statement is false, you must conect it for full-credit. Otherwise, you will only get partial credit. 1. The journal entry to record the cost of direct labor during the assembly line process is Dr. - Payroll Expense and Cr. Payroll Payable. 2. Beginning Work-in-Process Inventory + Costs Added = Amounts Completed and Transferred + Ending Work-in-Process Inventory 3. Both Beginning Work-in-Process Inventory and Amounts Completed and Transferred are considered 100% complete 4. Utilizing the step down method" of allocating service department costs to operating costs will leave service department costs effectively at zero, 5. When service department costs are allocated to other departments based on sales, this penalizes departments that are the most profitable. 6. Both financial accounting and managerial accounting focus on information needed by stockholders. 7. A master budget takes place during the process of organization, 8. The Chief Financial Officer has final approval of the company budget. 9. A discretionary fixed cost is part of a long-term master budget that cannot be changed, and a committed fixed cost is a commitment for at least one year. 10. The three elements of every product cost are direct materials, direct labor, and factoiy overhead 11. An example of a period cost would be indirect raw materials used in the sales dept