Factory machinery lubricants 

*
···/2

direct materials

Windshield *
2/2

direct materials

Depreciation of factory machinery *

2/2

manufacturing overhead

Wages of assembly line worker *

2/2

direct labor

Engine *
2/2

direct materials

Direct labor *
2/2

product costs

Selling expenses *
2/2

period costs

Manufacturing overhead *
2/2

product costs

Advertising expense *
2/2

period costs
Administrative expenses *
2/2

period costs

QUIZ 2

1. It addresses the informational demands of both financial and management accounting

by providing product cost information to external parties for investment and credit
decisions and for reporting purposes, and internal managers for planning, controlling,
decision making, and evaluating performance. *

cost accounting

2. Is the sum of all the indirect costs which are incurred while manufacturing a product.

manufacturing overhead cost

3.Refers to an activity driver analysis that identifies and analyses the factors involved in the
costing of goods and services as a part of activity-based costing
activity driver

Used by companies that make relatively small quantities of distinct products or perform unique
services that conform to specific actions designated by the purchaser. *
job order costing system

. A customer bought shoes personalized with their name written on the sides and shoelaces
made of cotton, rather a basic nylon material is example of what system. *
job order costing system

 Is all indirect costs incurred during the production process. *

manufacturing overhead

Is a method of costing used mainly in manufacturing where units are continuously mass-
produced through one or more processes. *
process costing
In manufacturing costs work in process inventory should be credited. 
F

Job cost sheet is a form used to record the costs chargeable to a specific job to determine the
total and unit cost. 
T

Tax Accounting can be viewed as the intersection between financial and management
accounting.
F

QUIZ 3

1. Process order costing is a costing method which is used to determine the cost of
manufacturing each product.

- F

2. The step 3 in the five steps in the process costing is the compute equivalent unit costs.

- T

3.Both job order and process costing use the same manufacturing accounts, including
Manufacturing Overhead, Raw Materials, Work in Process, and Finished Goods. 

-T

4.Job order costing accumulate costs by department. Process costing systems accumulated
costs by individual jobs.

-F

5. Process costing is an accounting methodology that traces and accumulates direct costs,
and allocates indirect costs of a manufacturing process. 
-T

6. To compute the cost per equivalent unit, the direct materials is divided by to the equivalent
units.

-T

7. The flow of costs through the manufacturing accounts is not basically the same in both
systems.

- F / SAME IN BOTH SYSTEMS

8. Manufacture of erasers are example of Job order costing

- F / PROCESS

9.There are seven steps in process costing.

- F / 5 STEPS IN PROCESSING

10.  Cost of goods sold is the first step in the illustration of the process costing.

-F