41. Raw materials inventory includes only direct materials.
42. The Goods in Process Inventory account is found only in the ledgers of merchandising companies.
43. The main difference between the income statement of a manufacturer and a merchandiser is that the merchandiser includes cost of goods manufactured rather than cost of goods purchased.
44. Raw materials purchased plus beginning raw materials inventory equals the ending balance of raw materials inventory.
45. Newly completed units are combined with beginning finished goods inventory to make up total ending goods in process inventory.
46. The series of activities that add value to a company's products or services is called a value chain.
47. Raw materials inventory turnover equals raw materials used divided by average raw materials inventory.
48. A manufacturer's cost of goods manufactured is the sum of direct materials, direct labor, and factory overhead costs incurred in producing products.
49. Indirect labor refers to the cost of the workers whose efforts are directly traceable to specific units or batches of product.
50. Factory overhead includes selling and administrative expenses because they are indirect costs of a product.