MGT201 Prelim Exam

(True or False) When raw materials are issued into production the Raw Materials account is debited.

(True or False) Manufacturing overhead account is debited for the actual overhead costs incurred.

(True or False) Finished Goods inventory account is credited for the amount of cost of goods manufactured during a period.

(True or False) When direct labor costs are incurred, Work in Process is debited.

(True or False) The cost in the ending Finished Goods inventory account consists of the direct materials, direct labor, and manufacturing overhead of all jobs still in process at the end of the period.

(True or False) Selling expenses are applied to production using a predetermined overhead rate.

(True or False) Indirect materials are part of manufacturing overhead.

(True or False) A company that produces bridal gowns will most likely use a job-order cost system.

(True or False) A company that produces cornflakes will most likely use a job-order cost system.

(True or False) Indirect materials issued into production should be debited to Work in Process.