Which of the following statements is true?

1. If a company uses a predetermined overhead rate, actual manufacturing overhead costs of a period will be recorded in the Manufacturing Overhead account and will be recorded on the job cost sheets.

2. The journal entry for cost of goods manufactured includes the costs of units that are partially completed.

3. Advertising costs should NOT be charged to the Manufacturing Overhead account.

Multiple Choice

A. Only statement I is true.

B. Only statement II is true.

C. Only statement III is true.

D. None of the statements are true.