Answer the following statements true (T) or false (F)
1. Total manufacturing costs to account for during the year minus the ending Work-in-Process Inventory
equals the cost of goods manufactured.
2. The following format represents the flow of costs for all three manufacturing inventory accounts:
Beginning balance + Additions - Ending balance = Amount used, manufactured, or sold
3. A manufacturer produced 7,500 total units. The cost of goods manufactured is $88,000 and the cost
of goods sold is $71,000. The unit product cost is $9.47.
4. Unit product costs can be used to measure operating income and determine the cost of Finished
Goods Inventory.
5. Unlike merchandising companies, income statements of service companies include cost of goods
sold as a line item.
1. TRUE
2. TRUE
3. FALSE
4. TRUE
5. FALSE
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