Which of the following costs would a computer manufacturer include in manufacturing overhead?

• the costs of the disk drive

• the wages earned by computer assemblers

• the costs of memory chips

• depreciation of testing equipment

Which of the following is not an element of manufacturing overhead?

• Sales manager's salary

• Plant manager's salary

• Factory repairman's salary

• Product inspector's salary

Indirect labour is a :

• non-manufacturing cost

• raw material cost

• product cost

• period cost

Which of the following costs are classified as a period cost?

• wages paid to a factory custodian

• wages paid to a production department supervisor

• wages paid to a cost accounting department supervisor

• wages paid to an assembly worker

Costs of goods available for sale is a step in the calculation of cost of goods sold of :

• a merchandising company but not a manufacturing company

• a manufacturing company but not a merchandising company

• a merchandising company and a manufacturing company

• neither a manufacturing company nor a merchandising company

A costs of goods manufactured schedule shows beginning and ending inventories for :

• raw materials and work in process

• work in process only

• raw materials only

• raw materials, work in process and finished product

The formula to determine the costs of goods manufactured is :

• Beginning raw materials inventory + Total manufacturing costs - Ending work in process inventory

• Beginning work in process inventory + Total manufacturing costs - Ending finished goods inventory

• Beginning finished goods inventory + Total manufacturing costs - Ending finished goods inventory

• Beginning work in process inventory + Total manufacturing costs - Ending work in process inventory

Direct material are :

• Product costs and Manufacturing overhead

• Product costs

• Product costs, Manufacturing overhead and period costs

• None of above

Direct materials costs and indirect materials costs are manufacturing overhead.

• TRUE

• FALSE

Manufacturing costs that cannot be classified as direct materials or direct labour are classified as manufacturing overhead.

• TRUE

• FALSE