17) Manufacturing overhead costs in an automobile manufacturing plant most likely include:
A) labor costs of the painting department
B) indirect material costs such as lubricants
C) sales commissions
D) steering wheel costs
18) Manufacturing overhead costs are also referred to as:
A) indirect manufacturing costs
B) prime costs
C) period costs
D) direct material
19) Merchandising companies normally report:
A) only merchandise inventory
B) only finished goods inventory
C) direct materials inventory, work-in-process inventory, and finished goods inventory accounts
D) no inventory accounts
20) Direct materials inventory would normally include:
A) direct materials in stock and awaiting use in the manufacturing process
B) goods partially worked on but not yet fully completed
C) goods fully completed but not yet sold
D) products in their original form intended to be sold without changing their basic form
21) Work-in-process inventory would normally include:
A) direct materials in stock and awaiting use in the manufacturing process
B) goods partially worked on but not yet fully completed
C) goods fully completed but not yet sold
D) products in their original form intended to be sold without changing their basic form
22) Finished goods inventory would normally include:
A) direct materials in stock and awaiting use in the manufacturing process
B) goods partially worked on but not yet fully completed
C) goods fully completed but not yet sold
D) products in their original form intended to be sold without changing their basic form
23) Finished goods inventory would normally include:
A) direct materials in stock and awaiting use in the manufacturing process
B) goods partially worked on but not yet fully completed
C) goods fully completed but not yet sold
D) products in their original form intended to be sold without changing their basic form
24) ________ are the acquisition costs of all materials that eventually become part of the cost object and can be traced to the cost object.
A) Direct manufacturing labor costs
B) Direct material costs
C) Indirect manufacturing costs
D) Manufacturing overhead costs
25) ________ include the compensation of all manufacturing labor that can be traced to the cost object.
A) Direct manufacturing labor costs
B) Indirect manufacturing costs
C) Direct material costs
D) Manufacturing overhead costs
26) ________ are all manufacturing costs that are related to the cost object but CANNOT be traced to that cost object.
A) Direct material costs
B) Period costs
C) Indirect manufacturing costs
D) Direct manufacturing labor costs
