For each of the following, indicate whether the statement is true or false.

a. A carpenter’s salary for a company that builds houses is both a product cost and a prime cost.

b. Raw materials inventory includes all materials that have been used in the production process.

c. The cost of goods manufactured schedule for the period summarizes the costs of products that were finished and are now available for sale.

d. When a product has completed the manufacturing process, work in process inventory is credited and finished goods inventory is debited.

e. Product costs are restricted to those costs that can be assigned to the units sold during the period.

f. Typically, overtime premium and the factory supervisors’ salaries are considered direct labor.

g. Direct materials and direct labor combined are known as prime costs.

h. A salesperson’s commissions and the depreciation expense for equipment in the administrative offices would always be considered period costs for a manufacturer, a retailer, or a service organization.

i. Raw materials that become part of the finished product but are insignificant are considered overhead.

j. Total manufacturing costs incurred plus the change in the finished goods inventory equals the cost of goods sold.

k. If a manufacturer or retailer is responsible for paying the freight to ship the product to the customer, the transportation cost should be considered a period cost.

l. Direct labor includes only the salaries of the people employed directly in production.

m. Total current manufacturing costs consist of prime costs and conversion costs.