This is chapter 15

Use the following information to answer the questions below This is the first month of operations Materials purchased during the month Materials used during the month Factory overhead used Direct Labor incurred $500 460 100 300 1. What is the amount of direct materials used this month? (show work for credit) A. $460 B. $100 pur 500 | 460 DMU. C. $400 D. $560 2. What is the total factory overhead incurred? (show work for credit) A. $400 WIP B. $300 C. $100 Beg D. $460 DMU 460 FOH 160 3. What are the conversion costs? (show work for credit) A. $460 B. $100 DL + FOH C. $560 D. $400 600 COGM 4. If $600 of product is completed and transferred to finished goods, what is the ending balance in Work in Process? (show work for credit) A. $600 B. $400 C. $600 D. $260 5. If the ending balance in finished goods is $100, what is the cost of goods sold? (show work for credit) A. $555 B. $740 C $500 D. $100 6. Labor costs that are not directly traceable to the product are part of factory overhead. A True B. False 7. For an automotive repair shop, the wages of mechanics would be classified as indirect labor costs. A True B. False 8. The cost of a manufactured product generally consists of direct materials and conversion costs. A. True B. False 9. Period Costs consist of selling and administrative costs. A True B. False 10. An example of a factory overhead cost is (A) President's salary B. Selling expenses C. Depreciation on the factory v D. Heating and lighting costs on the administrative building