(WIP) ACC 350 Exam 1 Study Material
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Ptt<br />
e.<br />
chs<br />
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Review 1132<br />
Problems<br />
Ch. 2 Review Problems<br />
TRUE / FALSE QUESTIONS<br />
1. Product costs become expenses in the period they are purchased.<br />
2. Cost of goods sold does not include the costs of selling merchandise.<br />
3. Factory heating and air conditioning should be considered a product cost in a manufacturing<br />
operation.<br />
4. Depreciation of office equipment is a manufacturing overhead cost at Dell Computer, a large<br />
manufacturer of personal computers.<br />
5. Overtime premium costs should theoretically be considered part of direct labor cost.<br />
6. Conversion costs equal direct materials and manufacturing overhead costs.<br />
7. Non-manufacturing costs include selling and administrative costs, which are not used to produce<br />
products.<br />
8. Tracing costs is generally considered a more accurate method of cost assignment than allocating<br />
costs.<br />
CONCEPTUAL MULTIPLE CHOICE QUESTIONS<br />
9. Which of the following should be considered part of a manufacturing company's direct labor cost?<br />
A) Factory supervisor's salary<br />
B) Receiving forklift operator's hourly wages<br />
C) Employer-paid health insurance on factory assemblers' wages<br />
D) Cost of idle time<br />
E) None of the above<br />
10. Wages paid to supervisors in the factory are typically classified as:<br />
A) Direct manufacturing labor costs<br />
B) Manufacturing overhead costs<br />
C) Prime costs<br />
D) Period costs<br />
11. Prime costs are the same as:<br />
A) Manufacturing overhead costs.<br />
B) Indirect labor costs.<br />
C) Total manufacturing costs.<br />
D) Direct labor and direct materials used.<br />
E) Direct labor and direct materials purchased.