Test Bank for Managerial Accounting, Second Edition
21.Ending finished goods inventory appears on both the balance sheet and the incomestatement of a manufacturing company.22.The beginning work in process inventory appears on both the balance sheet and the costof goods manufactured schedule of a manufacturing company.23.In calculating gross profit for a manufacturing company, the cost of goods manufactured isdeducted from net sales.24.Finished goods inventory does not appear on a cost of goods manufactured schedule.25.If the ending work in process inventory is greater than the beginning work in processinventory, then the cost of goods manufactured will be less than total manufacturing costsfor the period.26.Finished goods inventory for a manufacturing company is equivalent to merchandiseinventory for a merchandising company.27.Raw materials inventory is not an asset until it is used to make a product.28.Raw materials inventory shows the cost of completed goods available for sale tocustomers.*29.In preparing closing entries for a manufacturing company, all revenue and expenseaccount balances are closed to a Manufacturing Summary account.*30.To balance the Cost of Goods Manufactured columns of a work sheet for a manufacturingcompany, an entry must be made in the income statement debit column.
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