Designate whether each of the following statements dealing with the process cost accounts and cost-volume-profit relationship is true (T) or false (F).

T or F a) A cost reconciliation schedule is prepared to assign total costs to units transferred out and in ending work in process.

T or F b) The margin of safety is the difference between actual sales and target net income sales.

T or F c) Manufacturing costs in beginning work in process are ignored in computing the cost of units transferred out and the cost of ending work in process.