True or false

1. When raw materials are purchased, the Work in Process Inventory account is debited.

TRUE

FALSE

2. Lumber can be both a finished product or a material.

TRUE

FALSE

3. Selling and administrative expenses should be added to the Factory Overhead account.

FALSE

TRUE

4. Most factory overhead costs are direct costs and therefore can be easily identified with specific jobs.

TRUE

FALSE

5. A process costing system is most appropriate when a large volume of uniform products is produced.

TRUE

FALSE

6. Indirect materials are classified as administrative expenses.

TRUE

FALSE

7. Product costs are historical figures and therefore are of little use to the manager.

TRUE

FALSE

8. In a manufacturing setting, prime costs are fixed.

TRUE

FALSE

9. Internal reports must be communicated

daily

monthly

as needed

annually

10. Factory rent is included in factory overhead account.

TRUE OR FALSE