100.During February 2014, Benke Manufacturing Company paid $18,000 in property taxes on one of its factory buildings. This overhead cost should be allocated to units completed during the month it was paid.
True False
101.Actual overhead costs are debited to the manufacturing overhead account, while estimated overhead costs are debited to the work in process account.
True False
102.By the end of the year, Shirley Company's manufacturing overhead account had a $1,500 credit balance. This means that overhead was underapplied during the year.
True False
103.Debits in the work in process account consist of actual direct material costs, actual direct labor costs, and estimated manufacturing overhead costs.
True False
104.The credit to the finished goods account is referred to as the cost of goods manufactured.
True False
105.Product cost flows are cyclical in that the set of transactions that record the acquisition of raw materials, the conversion of raw materials to finished goods, and the sale of finished goods and related collection of cash occur over and over again.
True False
106.Hutton Company reported a $750 unfavorable overhead variance on a recent performance report. This means that factory overhead was underapplied during the period.
True False
107.If actual volume is smaller than the budgeted or expected volume, then a favorable volume variance will occur.
True False
108.Information about all three manufacturing inventory accounts is required to prepare the cost of goods manufactured and sold schedule.
True False
109.Cost of goods sold must be determined prior to computing cost of goods manufactured.
True False