1. Direct materials costs and indirect materials costs are manufacturing overhead.

False

2. All manufacturing costs that cannot be classified as direct materials or direct
labor are classified as manufacturing overhead.
True

3. The total cost of a finished product generally contains equal amounts of materials,
labor, and overhead costs.
False


4. Both direct labor cost and indirect labor cost are product costs.
True

5. Period costs include selling and administrative expenses.
True


6. Period costs are not inventoriable costs.
True

7. Product costs are also called inventoriable costs.
True


8. Direct materials become a cost of the finished goods manufactured when they are
acquired, not when they are used.
False

9. The sum of the direct materials costs, direct labor costs, and beginning work in
process is the total manufacturing costs for the year.
False


10. The work of factory employees that can be physically and directly associated
with converting raw materials into finished goods is
a. manufacturing overhead.
b. indirect materials.
c. indirect labor.
d. direct labor.