MODULE 18(ACTIVITY 3)

Name: MYLENE NELLAS HERAGA Class number: BLOCK 2

Section: BSA 1-COC-A Schedule: W/S 8am-12pm Date: OCT 6, 2021

ACTIVITY 3: Skill-building Activities

T 1. Manufacturing overhead includes all manufacturing costs except direct labor and direct
materials.
F 2. Product cost are all deducted from revenue in the period in which they are incurred.
T 3. Raw materials inventory refers to the direct materials on hand and available for use in the
manufacturing process.
F 4. Prime costs consist of direct materials and direct labor. Conversion cost is essentially direct
labor.
F 5. Finished goods inventory is an asset, but inventories of raw materials and work in process
are not considered assets until production is completed.
F 6. All costs and expenses incurred by a manufacturing company are considered product costs
rather than period costs.
T 7. The wages paid to supervisors are an example of indirect labor.
F 8. A manufacturing company usually has three separate inventories: raw materials, work in
process and finished goods.
T 9. Product costs are the costs of purchasing or manufacturing inventory and considered as
assets until the goods are sold.
F 10. Manufacturing costs are regarded as expenses of the current period and are expenses
when incurred.