111.The following are all product costs
except
a.direct materials
b.sales and administrative expenses
c.direct labor
d.factory overhead
112.Indirect labor and indirect materials are classified as
a.factory overhead and product costs
b.factory overhead and period costs
c.operating costs and period costs
d.operating costs and product costs
113.An example of a period cost is
a.advertising expense
b.indirect materials
c.depreciation on factory equipment
d.property taxes on plant facilities
114.Direct labor and direct materials are
a.product costs and expensed when the goods are sold
b.product costs and expensed when incurred
c.period costs and expensed when incurred
d.period costs and expensed when the goods are sold
115.Indirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated as
a.period costs and expensed when incurred
b.product costs and expensed when the goods are sold
c.product costs and expensed when incurred
d.period costs and expensed when the goods are sold
116.Rent expense on a factory building would be treated as a(n)
a.period cost
b.product cost
c.indirect cost
d.direct material cost
117.Insurance expense incurred on a factory building would be treated as a
a.direct cost
b.period cost
c.product cost
d.selling cost
Jensen Company reports the following:
Direct materials used
|
$345,000
|
Direct labor incurred
|
250,000
|
Factory overhead incurred
|
400,000
|
Operating expenses
|
175,000
|
118.Jensen Company’s period costs are
a. $345,000
b. $250,000
c. $400,000
d. $175,000
119.Which of the following is
nota factory overhead cost?
a.materials used directly in the manufacturing process of the product
b.insurance on factory equipment
c.salaries of production supervisors
d.property tax on factory building
120.Factory overhead includes
a.factory rent and direct labor
b.direct materials and direct labor
c.indirect materials and direct materials
d.indirect labor and indirect materials