Question 27

A typical factory overhead cost is:

Direct labor costs for factory workers.

Stationery and printing costs for the corporate offices.

Depreciation on the manufacturing machinery and equipment.

Postage costs.

Question 28

The combined cost of direct labor and factory overhead, which isnecessary to convert the direct materials into finished goods, isknown as conversion cost. true or false

Question 29

The following data were taken from the general ledger of DataCorp., a merchandiser of computers and accessories:

Merchandise Inventory, August1

$ 323,000

Merchandise Inventory, August 31

Purchases

Compute the cost of goods sold for the month of August.

Question 30

Factory overhead includes:

Indirect labor but not indirect materials.

Indirect materials but not indirect labor.

All manufacturing costs, except indirect materials and indirectlabor.

All manufacturing costs, except direct materials and directlabor.

Question 31

For a manufacturer, manufacturing costs incurred to date forgoods in various stages of production, but not yet completedis:

Merchandise Inventory.

Finished Goods.

Work in Process.