Solved by verified expert :27. Generally accepted accounting principles require companies
to use only one factory overhead rate for product costing.
True False
28. Activity-based costing is a method of accumulating and
allocating costs by department.
True False
29. Interim financial statements for a manufacturing business
would report overapplied factory overhead as a deferred item on the balance
sheet.
True False
30. The debit to factory overhead for the cost of indirect
materials is obtained from the summary of the materials requisitions.
True False
31. In a factory with several processing departments, a
single factory overhead rate may not provide accurate product costs and
effective cost control.
True False
32. Nonmanufacturing costs are generally classified into two
categories: selling and administrative.
True False
33. The current year’s advertising costs are normally
considered period costs.
True False
34. Direct labor cost is an example of a period cost.
True False
35. A manufacturing business reports just two types of
inventory on its balance sheet: work in process inventory and finished goods
inventory.
True False
36. On the balance sheet for a manufacturing business, the
cost of direct materials, direct labor, and factory overhead, which have
entered into the manufacturing process but are associated with products that
have not been finished, is reported as direct materials inventory.
True False
37. As product costs are incurred in the manufacturing
process, they are accounted for as assets and reported on the balance sheet as
inventory.
True False
38. A receiving report is prepared when purchased materials
are first received by the manufacturing department.
True False
39. Period costs are costs that are incurred for the
production requirements of a certain period.
True False
