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Part ITrue or False questions. Write out the word true or false in the space provided. (2 Points Each) 1. For an automotive repair shop, the wages of mechanics are classfied as direct labor cost. 2. Costs other than direct materials cost and direct labor cost are for a manufacturer are classified as factory overhead cost 3. Cost of oil used to lubricate factory machinery is an example of a direct material cost. 4. A process cost accounting system accumulates costs for each of the departments or processes within the factory 5. Materials are transferred from the storeroom to the factory in response to materials requisitions 6. Depreciation expense on the office equipment is part of factory overhead cost. 7. In the job order cost system, the finished goods account is the controlling account for the factory overhead ledger. 8. Conversion costs include materials, direct labor, and factory overhead 9. Equivalent units of production are the number of whole units that have been manufactured from start to finish during an accounting period. 10. If 30,000 units of materials enter production during the first year of operations, 25.000 of the units are finished, and 5,000 are 50% completed , the number of equivalent units of production would be 28,500

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