Costs are transferred from the balance sheet to the income statement as cost of goods sold when

A.

direct materials, direct labor and manufacturing overhead are transferred to the beginning Work-in-Process Inventory account.

B.

the total of Cost of Goods Manufactured is determined.

C.

goods are transferred from the Work-in-Process Inventory account to the Finished Goods Inventory account.

D.

finished goods are sold.

Which of the following companies is most likely to use process costing?

A.

a music studio

B.

an accounting firm

C.

a building contractor

D.

a breakfast cereal company

Actual manufacturing overhead costs are credited to the Manufacturing Overhead account.

True

False

Production cost reports prepared using first-in, first-out (FIFO) method determine the average cost of equivalent units of production by combining beginning inventory costs with current period costs.

True

False

Activitybased costing can be used in determining the cost of services as well as products.

True

False