Multiple choice 13. Which of the following would most likely be a product cost?a. Salary of VP of sales.b. Advertising for a particular product.C. Drill bits for a drill press used in the plant assembly area.d. Salary of the company receptionist.14. An accountant recently debited Work-in-Process Inventory and creditedManufacturing Overhead. The accountant was:a. applying a predetermined overhead amount to production.b. recognizing receipt of the factory utilities billc. recording a year-end adjustment for an insignificant amount ofunderapplied overhead.d. recognizing actual overhead incurred during the period.

Solution 13: Product cost are the cost that is capitalized in inventory cost or that is incurred in…

13. Which of the following would most likely be a product cost? a. Salary of VP of sales. b. Advertising for a particular product. C. Drill bits for a drill press used in the plant assembly area. d. Salary of the company receptionist.

13. Which of the following would most likely be a product cost? a. Salary of VP of sales. b. Advertising for a particular product. C. Drill bits for a drill press used in the plant assembly area. d. Salary of the company receptionist.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

Multiple choice

13. Which of the following would most likely be a product cost?
a. Salary of VP of sales.
b. Advertising for a particular product.
C. Drill bits for a drill press used in the plant assembly area.
d. Salary of the company receptionist.
14. An accountant recently debited Work-in-Process Inventory and credited
Manufacturing Overhead. The accountant was:
a. applying a predetermined overhead amount to production.
b. recognizing receipt of the factory utilities bill
c. recording a year-end adjustment for an insignificant amount of
underapplied overhead.
d. recognizing actual overhead incurred during the period.

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