true or false?

12 1. Manufacturing businesses maintain four inventory accounts instead of a single 13 merchandise inventory account. 14 2. Materials used that enter directly into the finished product of a manufacturing concern 15 are considered part of factory overhead cost. 16 3. The statement of cost of goods manufactured reports data comparable to that reported 17 on the income statement of a trading concern as cost of goods sold. 18 4. The job order cost system is appropriate where few products are manufactured and each 19 product is made to customers' specifications. 20 5. A process cost system would be appropriate for a crude oil refining business 21 6. Process cost systems provide for a separate record of the cost of each particular quantity 22 of product that passes through the factory. 23 7. A manufacturer may employ a job order cost system for some of its products and a 24 process cost system for others. 25 8. The purchase order serves as the source document for debiting the accounts in the 26 materials ledger. 27 9. The document that serves as the basis for crediting accounts in the materials ledger is 28 the receiving report. 29 10. The document used by department managers to inform the purchasing department of 30 materials that will be needed for production is the materials requisition. 31 11. An advantage of a perpetual inventory system for materials is that it facilitates the 32 disclosure of inventory shortages or other irregularities. 33 12. The document that serves as the basis for recording direct labor on a job cost sheet is 34 the time ticket. 35 13. Insurance expense on factory equipment is part of factory overhead cost. 36 14. Factory overhead is applied to production using a predetermined overhead rate. 37 15. If factory overhead applied exceeds the actual costs, the factory overhead account 38 will have a dehit balance