Which of the following statements regarding the schedule of cost of goods manufactured and sold is true?

Multiple Choice

• The amount of raw materials used is computed by subtracting the raw materials available for use from the ending balance in the raw materials inventory account.
• The amount of raw materials used is subtracted from the amount of labor used to determine the total manufacturing cost.
• The cost of goods sold is determined by subtracting the ending balance in the finished goods inventory account fromthe amount of the finished goods available for sale.
• The amount of overapplied overhead is added to the cost of goods sold.