TRUE OR FALSE.

1. On a balance sheet, product costs are shown as current assets
2. The cost of units completed during a period is called total manufacturing costs.
3. The direct labor account is classified as temporary, and there has no ending balance.
4. Process Costing is most appropriate when manufacturing large batches of homogenous products.
5. The numerator in the formula for equivalent units includes all beginning inventory cost when using weighted average costing assumption.
6. The FIFO method combines beginning inventory and current production to compute cost per unit of production
7. Direct materials are those materials that can be physically traced to a particular product
8. Manufacturing overhead includes all manufacturing costs other than direct materials and direct labor
9. Overhead costs can always be traced to a particular product
10. Prime cost is the sum of direct materials and direct labor costs
11. Conversion cost is the sum of direct material and manufacturing overhead costs
12. Selling and administrative costs are classified as period expenses