3. A performance report includes cost and production data for specific cost centers along with a calculated variance from the budgeted amount. True or false

6. At the end of the period, the balance in the Materials account should represent

		the cost of materials purchased.
		the cost of materials on hand.
		the cost of materials issued into production.
		the cost of materials included in Work in Process and Finished Goods.

8. Murphy Company uses 2,000 yards of material each day to make hats. It usually takes five days from the time Murphy orders the material to when it is received. If Murphys desired safety stock is 6,000 yards, what is Murphys order point?

		6,000 yards
		8,000 yards
		10,000 yards
		16,000 yards