1. Modified True/ False (20 points, 1 point each). There are twenty statements below. Some are true and some are false. Please write the word true or false in the space provided. If the statement is false, you must correct it for any credit. No credit will be given otherwise.

________1. A master budget takes place during the process of planning.

________2. The Chief Financial Officer has final approval of the company budget.

________3. An example of a period cost is indirect materials used in the sales department.

________4. The estimate used to apply overhead to a product cost is called the direct method.

________5. The job cost sheet is used to keep records in a process costing system.

________6. The only time that finished goods inventory is charged to COGS is at year end.

________7. The journal entry to record the cost of direct labor during the assembly line process is Dr. Payroll Expense and Cr. Payroll Payable.

________8. Beginning Work-in-Process Inventory + Costs Added = Amounts Completed and Transferred + Ending Work-in-Process Inventory.

________9. Both Beginning Work-in-Process Inventory and Amounts Completed and Transferred are 100% complete.

_______10. When service department costs are allocated to other departments based on sales, this penalizes departments that are most profitable.