Determine if the statements about the schedule of cost of goods manufactured are true.

The Schedule of Cost of Goods Manufactured contains three elements of product costs$$direct materials, direct labor, and manufacturing overhead.

The Schedule of Cost of Goods Manufactured summarizes the portions of its product costs that remain in ending Work in Process inventory and that are transferred out of Work in Process into Finished Goods.

Multiple Choice

Only statement $1$ is true.

Only statement $2$ is true.

Both statements $1$ and $2$ are true.

Neither statement is true.