31) Finished goods inventory includes the total costs of manufacturing a product.
32) A cost of goods manufactured statement should be prepared before the income statement has been prepared.
33) The balance sheet contains all three manufacturing inventories.
34) The steps of the accounting cycle for a manufacturing company are different from those used for a merchandise company.
35) The first step in the preparation of the cost of goods manufactured is to add in and subtract out the two raw material inventory balances.
36) The bill of lading shows the cost of materials put into raw materials inventory.
37) In entries to record the movement of material, labor, and overhead through the operation of a company, the credit is the source and the debit is the destination.
38) If a company had a beginning balance of $5,000 in Raw Materials, an ending balance of $3,000 and purchased $27,000 of materials during the month, then the raw material cost for the month was $29,000.
39) If a company had a beginning balance of $5,000 in Work-in-Process Inventory, an ending balance of $7,000 and incurred direct labor costs of $8,000 and overhead costs of $4,000, then the cost of goods manufactured during the month was $24,000.
40) If a company had a beginning balance of $5,000 in Finished Goods Inventory, an ending balance of $8,000 and cost of goods manufactured was $47,000 during the month, then the cost of goods sold for the month was $44,000.