AT&T e-28%) 10:19 AM asuonline.alasu.edu 16) Which of the following statements is true regaeding prodact and period costs 6 A) Delivary espense is a product cost and indirect materials is a period cost B) Sales commissions and indirect labor are both period costs C) Office salaries expense and factory maintenance are both product costs D) Office rent is a peoduct cost and supervisons' salaries exponse is a period cost E) Factory renn is a product cost and advertising expense is a period cost 17) At the current year-end, Simply Company found that its overhead was underapplied by 17) $2,500, and this amount was not considered material. Based on this information Simply should A) Close the $2.500 to Cost of Goods Sold B) Camy the $2,500 so the income statement as "Other Expense" C) Carry the $2,500 to the next period D) Do mothing about the $2,500, since i is not material, and it is likely that overhead will be overapplied by the same amount nest year. E) Close the $2,500 o Finished Goods Invenloey 13) Omega Contractors manefactures each house to customer specifications le most likcly s) A) A periodic inventery sysiem. C) Job order costing D) Activity-basod costing 19) Clemmens Company applies overhead based on direct labor cost. Estimaned overhead 19 and direct laboe costs foe the year were 5112,500 and $125,000, respectively. Daning the ycar, actual overhcad was $107.400 and acteal direct labor cost was $150,000. The entry to close the over- or underapplied overhead at year-end, assuming an immaterial amount, would include A) A credn to Finished Goods Inventory for $600 B, A debit to Costofdioods Sold for S600 C) A credit to Cost of Goods Sold for 5600 D) A credit to Factory Overhead for 5600 E) A debit so Work in Process Inventory for S600. 20) Minstrel Manufacturing uses a job order costing system. During one month Minstrel 20) purchased 5198,000 of raw matcrials on crodit; issued materials to production of $195,000 of which $30,000 were indinect. Minstrel incurred a factory payrell of $150,000, of which $40,000 was indirect labor. Minstrel uses a predetermined overhead fate of 150% ef direct Ibor cost. The journal entry lo teoced e application of factory overhead to production is: A) Debit Facsoey Payroll S1S0,000, credit Week in Process Inventory S150,000 B) Debit Woek in Process Inventory $225,000; crodit Factory Overhead $225,000 C) Debit Factory Overhead $165,000 credit Work in Process Inventory $165,000. D) Debit Work in Process Inventory $165,000, crodit Factory Payroll $165,000 E) Debit Work in Process Inventiory $165,000, crodit Factory Overhcad S165,000 21) The Week in Precess Inventory account of a manofacturing company that usesan overbcad rate based on direct labor cost has a $3,500 debin balance after all posting is completed. The cest sheet of the one job sti in process shows direct material cost of $1,400 and diroct labor cost of $800. Therefore, the amount of the applied overhead is A) $2.200. B) $2.400 C$1,800 E) $1,000 22) A job cost sheet shows 1 rmation about each of the following items escept; A) The costs incurred by the marketing department in selling the job B) The ovethead costs assigned to the job