Final answer:
The statement is false; the Finished Goods Control account includes allocated manufacturing overhead costs, not actual overhead costs. Overhead is allocated to the Finished Goods account using a predetermined rate.
Step-by-step explanation:
The statement that the Finished Goods Control account consists of actual manufacturing overhead costs rather than allocated manufacturing overhead costs is false. In traditional accounting, the Finished Goods Control account contains the allocated manufacturing overhead costs, as well as direct materials and direct labor that are incurred during the production process. Actual overhead costs are recorded in the Manufacturing Overhead account. At the end of the accounting period, overhead is allocated to the Finished Goods account using a predetermined overhead rate, meaning the amount in the Finished Goods Control account does not represent the actual but rather the allocated overhead costs applied to the products.