Question

T F   5. Product costs must be allocated to the units transferred out of the    department and the partially completed units on hand at the end of the      period.

T F   6. GM is a process manufacturer.

T F   7. The cost of factory overhead incurred for indirect materials and other factory overhead is recorded in the direct labor account for each department.

T F   8. Coca-Cola is a job order manufacturer.

T F   9. Direct labor is assumed to be added in each department.

T F   10. The cost of units sold is transferred to the finished goods account.

Answer 1

Solution:

5. True, roduct costs must be allocated to the units transferred out of the department and the partially completed units on hand at the end of the period.

6. True, GM is a process manufacturer.

7. False, The cost of factory overhead incurred for indirect materials and other factory overhead is recorded in the factory overhead account.

8. False, Coca-Cola is a process manufacturer.

9. False, It is not necessary, Direct labor is assumed to be added in each department

10. False, The cost of units sold is transferred to the cost of goods sold account.