QUESTION 3

When accounting for materials and labor, indirect labor is recorded in:

		raw materials inventory.
		work in process inventory.
		*manufacturing overhead.
		finished goods inventory.

QUESTION 4

When accounting for materials and labor, materials used are recorded in:

raw materials inventory.

work in process inventory.

finished goods inventory.

cost of goods sold.

QUESTION 5

When selecting a manufacturing overhead allocation base, managers should select the:

		number of products produced.
		activity-based products.
		cost driver of those manufacturing overhead costs.
		same number used in prior years.

QUESTION 6

Which of the following companies would use a job costing system?

		Health care provider
		Crayon manufacturing company
		Potato chip manufacturing corporation
		Spring water bottling company