QUESTION 7

1. (07a) Which of the following is true of period costs?

   	A.	If period costs are incurred, manufacturing overhead will increase.
   	B.	As period costs are incurred, assets are recognized.
   	C.	Period costs are incurred in selling and administrative activities.
   	D.	Period costs are incurred at regular intervals for the same amount.

3 points

QUESTION 8

1. (08) The following data (in thousands of dollars) have been taken from the accounting records of Juno Corporation for the just completed year.

   Direct materials used -------------------------------- $300

   Direct materials purchased -------------------------- $400

   Depreciation of store building --------------------- $150

   Insurance on sales vehicles (paid monthly)------- $30

   Total Indirect manufacturing costs ---------------- $380

   Rent on factory equipment (paid monthly) ----- $200

   Bonuses to administrative personnel ------------- $240

   Advertising costs ------------------------------------------- $80

   Cost of goods manufactured ------------------------- $680

   Total Manufacturing costs ----------------------------- $990

   The total amount of Period costs was: _______

   	A.	$700
   	B.	$1,180
   	C.	$230
   	D.	$500