Accounting II Chp 19

One of the three inventories of a manufacturing business is

• prepaid insurance

• materials

• direct labor

• none of these

One of the three basic elements of manufacturing cost of any finished product is

• indirect materials

• direct materials

• insurance expense

• none

A factor considered in estimating factory overhead costs is

• the expected increase in units of factory overhead items

• the applied overhead rate

• the estimated amount of direct labor costs

• none of these

When a completed product is sold, the cost of the product is recorded in the

• finished goods ledger

• materials ledgeer

• cost ledger

• none of these

When a product is completed, total cost of making that product is recorded in the

• materials ledger

• materials requisition

• finished goods ledger

• none of these

Each materials ledger card should show the quantity of the item of materials that has been ordered

• True

• False

Direct labor includes only the wages of those working directly on a product

• True

• False

Each materials ledger should show the quantity on hand of the item

• False

• True

Factory overhead should include the amount paid for taxes on the factory building

• True

• False

Job-time record amounts are recorded in the Direct Labor column of a cost sheet

• True

• False