76.Product costs are immediately recorded in expense accounts when the products are manufactured.
True False
77.Costs that are not classified as product costs are normally expensed in the period incurred.
True False
78.A company that incurred $1,000 in production costs reported cost of goods sold of $800 and selling costs of $100. Its ending finished goods inventory was $300.
True False
79.A company uses sandpaper to prepare its product for finishing. Most manufacturers would classify the sandpaper as direct material because it is physically consumed in the production process.
True False
80.Cash paid to production workers should be recorded as Wages Expense in the income statement for the period incurred.
True False
81.For a manufacturing company, both direct labor costs and indirect labor costs are classified as product costs.
True False
82.Product costs flow from the balance sheet to the income statement.
True False
83.Unlike direct material and direct labor costs, overhead costs must be allocated to products.
True False
84.Depreciation on manufacturing equipment is an indirect product cost, while depreciation on office equipment is a period cost.
True False
85.Upstream costs are classified as product costs and downstream costs are classified as period costs for financial reporting purposes.
True False