1 Indirect materials are accounted for as factory overhead b

1) Indirect materials are accounted for as factory overhead because they are not clearly identified with specific product units. True or False

2) The file of job cost sheets for completed but undelivered jobs equal the balance in the works in process inventory account. True or False

3) Managerial accounting reports and information are used by external users and financial accounting by internal users. True or False

Solution

1 True, Indirect materials are accounted for as factory overhead because they are not clearly identified with specific product units 2 False, The file of job cost sheets for completed but undelivered jobs equal the balance in the finished goods inventory account. 3 False, Managerial accounting reports and information are used by internal users and financial accounting by external users.