Chapter 4

The document that serves as the basis for recording direct labor on a job cost sheet is the time card.

• True

• False

The document that serves as the basis for recording direct labor on a job cost sheet is the time ticket.

• True

• False

Labor costs are the worker’s payroll needed to convert raw materials into finished products.

• True

• False

Wages paid to factory supervisor’s are considered as direct labor.

• False

• True

Direct labor costs are charged to Factory Overhead control account.

• True

• False

Direct labor costs are wages paid to workers who are direct engaged in the conversion of raw materials to finished goods.

• False

• True

Labor cost control requires correct time keeping and improvement in the method of production.

• False

• True

Labor costs significantly influence the prime cost per unit.

• True

• False

Labor costs significantly influence the conversion cost per unit.

• True

• False

Preparation of payroll is an example of timekeeping.

• True

• False