QUESTION 8: In a merchandising organization, the merchandise inventory is expensed when sold in which expense account?

A. Supplies Expense

B. Cost of Goods Sold

C. Office Supplies Expense

D. Raw Materials

QUESTION 9 What are the three product costs included in the work in process inventory account

A. Raw Materials Used, Supplies Inventory and Direct Labor

B. Overhead, Supplies Inventory and Direct Labor

C. Overhead, Direct Labor and Finished Goods

D. Raw Materials Used, Overhead, and Direct Labor

QUESTION 10 Which accounts below is an inventory account

A. Office Expense

B. Finished Good

C. Direct Labor

D. Overhead

QUESTION 11 A candy Manufacturer is an example of a business that would utilize process Costing.True or False?

QUESTION 12 The predetermined overhead rate is total estimated overhead/total estimated cost driver True or False?

QUESTION 13 If total estimated overhead is 200,000 and the total estimated cost driver is direct labor hours and is 500,000 hours, what is the overhead rate?

A. .4

B. 2.5

C. 5

D. .25

QUESTION 14 Product costs are first classified as inventory assets before they are expensed as cost of goods sold. True or False?