Manufacturing Income Statement

Manufacturing Income Statement

Learning Intention: To calculate Cost of Finished Goods

Multiple Choice

Cost of goods produced $50 000;

Opening Stock of finished goods-$20 000;

Closing stock of finished goods- $10 000;

Sale of finished goods $90 000; Bank charges $2 000

What is the cost of finished goods sold?

• $30 000

• $60 000

• $50 000

• $10 000

Multiple Choice

Cost of goods produced $50 000;

Opening Stock of finished goods-$20 000;

Closing stock of finished goods- $10 000;

Sale of finished goods $90 000; Bank charges $2 000

What is the gross profit?

• $30 000

• $60 000

• $50 000

• $10 000

Fill in the Blanks

True or False? Office manager's salary is shown in the manufacturing account

Multiple Choice

Which of the following is a factory indirect cost

• machinery maintenance cost

• wages of machine operator

Fill in the Blanks

The two types of costs that makes up the PRIME COST are

Fill in the Blanks

The total cost of producing 1 000 decorative masks is $3 500. What is the unit cost of production? (cost to produce one)

Multiple Choice

Which one of the following factory costs is a direct cost?

• machinery repairs

• carriage inwards on raw materials

• storekeeper's wages

Multiple Choice

Prime cost $700

Indirect cost 40

Opening Work in progress 10

Closing work in progress 20

Total Cost of Production is

• $750

• $730

• $670