Which of the following statements related to the four step process used to compu

Question

Which of the following statements related to the four step process used to compute the predetermined overhead rate is true? O The third step is to analyze all the mixed costs in the firm. O The first step is to compute the actual amount of the allocation base that will be used for next period's production. O The second step is to estimate the total fixed manufacturing overhead cost for the coming period and the variable manufacturing overhead cost per unit of the allocation base o The fourth step is to compute the predetermined overhead rate by dividing actual total manufacturing overhead cost by actual total amount of the allocation base. QUESTION5 All of the following statements are true except: The schedule of cost of goods manufactured contains three elements of product costs-direct materials, direct labor and manufacturing overhead. The schedule of cost of goods sold shows the detail of the work in process inventory account. The schedule of cost of goods sold summarizes the portions of costs that remain in ending Finished Goods inventory and that are transferred out of finisned goods to Cost of Goods Sold, The schedule of cost of goods manufactured summarizes the port ons of costs that remain in ending Work in Process inventory and that are transferred out of Work n Process to Finished Goods.

Explanation / Answer

Answer to Question 5:

False statement is d) The schedule of cost of goods manufactured summarizes the portions of costs that remain in ending work in process inventory and that are transferred out if work in process to finished goods.

Because the schedule of cost of goods manufactured summarizes the portions of costs that remain in ending finished goods inventory and that are transferred out of finished goods to cost of goods sold

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