Multiple Choice

1.Manufacturing costs would not include

a.depreciation on factory equipment.

b.indirect labor costs.

c.indirect materials used.

d.sales salaries expense.

2. Each of the following is true with respect to product costs, except

a.Direct labor is an example of a product cost.

b.Product costs are deducted from revenue when the manufacturing process is completed.

c.Product costs are not regarded as expenses of the current period.

d.Product costs represent inventoriable costs.

3. Which of the following is not likely to be treated as a product cost?

a.Depreciation on the factory.

b.Interest paid on notes payable.

c.. Portion of the cost of running the quality control department.

d.Wages paid to factory workers.

4. The purchasesraw materials account is debited when

a.direct materials are placed into production.

b.direct materials are purchased.

c.indirect materials are placed into production.

d.indirect materials are purchased.

5. The direct labor account is debited

a.at the end of the payroll period, when employees are paid.

b.when a new factory employee begins work.

c.when related labor costs are transferred into the work in Process Inventory.

d.when the goods manufactured are completed.