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5258 Words Apr 29th, 2013 22 Pages
T1& 2 (Q)-Introduction

True/False Questions

1. The three cost elements ordinarily included in the inventoriable cost of a manufactured product are direct materials, direct labor, and marketing costs.

2. Depreciation on manufacturing equipment is a period cost.

3. Salaries and wages incurred in the factory would be product costs

4. Commissions paid to salespersons are a variable selling expense.

5. Variable costs are costs that vary, in total, in direct proportion to changes in the volume or level of activity.

Multiple Choice Questions

6. The variable portion of the cost of electricity for a manufacturing plant is a:

| |Conversion cost |Period
…show more content…
B) $76,000. C) $94,000. D) $86,000.

15. The following data were taken from the cost records of the Beca Company for last year:

|Depreciation, factory equipment |$30,000 |
|Depreciation, office equipment |7,000 |
|Supplies, factory |1,500 |
|Maintenance, factory equipment |20,000 |
|Utilities, factory |8,000 |
|Sales commissions |30,000 |
|Indirect labor |54,500 |
|Rent, factory building |70,000 |
|Purchases of raw materials |124,000 |
|Direct labor cost |80,000 |
|Advertising expense |90,000 |
|Inventories: |Beginning |Ending |
|Raw materials |$ 9,000 |$11,000 |
|Work in

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