True / False Questions
80.A product costing system is needed to determine the amount of product costs that should be reported on the income statement as selling and administrative expenses.
True False
81.Companies need service and product cost information for both financial reporting and managerial accounting.
True False
82.Product cost information for manufacturing companies affects the income statement but does not affect the balance sheet.
True False
83.Product costs flow through the manufacturer's inventory accounts in the following order: raw materials, finished goods, and cost of goods sold.
True False
84.Most companies initially record the cost of materials acquired in the raw materials account.
True False
85.At the end of the period, the balance remaining in work in process is reported on the balance sheet.
True False
86.The cost of goods completed during a period is transferred from finished goods to cost of goods sold.
True False
87.Burgess Company incurred product costs of $50,000 during the period when no units were sold. No product costs will be reported on the company's income statement for the period.
True False
88.Service companies accumulate information about the cost of services provided, and they report those costs in an inventory account.
True False
89.Service companies do not have work in process and finished goods accounts.
True False