Manufacturing Accounts Intro

Manufacturing Accounts Intro

by Shauna-Kay Herah

Multiple Choice

A __________ is part of the annual financial statements and is used to calculate the cost of goods produced.

• Manufacturing account

• Prime cost

• Cost of production

• Work in progress

Multiple Choice

Manufacturing Account is prepared to calculate

• Cost of capital

• Cost of sales

• Cost of goods sold

• Cost of production

Multiple Select

Which of the following are examples of indirect costs? (There are THREE correct answers to select!)

• Factory heat and light

• Factory manager salary

• Factory rent and rates

• Machine operator wages

Multiple Choice

_______ is the total of the direct materials, direct labour and direct expenses. It is the cost of the essentials necessary for production.

• Manufacturing account

• Prime cost

• Cost of production

• Work in progress

Multiple Choice

Which of these is not an example of a Factory Overhead?

• Depreciation of factory Machinery

• Factory Rates

• Factory Insurance

• Depreciation of office machinery

Multiple Choice

A manufacturing account records the administrative expenses and the finance expenses of the business

• TRUE

• FALSE

Multiple Choice

Manufacturing Account does not include

• Direct and Indirect cost

• Prime and Factory Overhead cost

• Administrative & Selling cost

• Direct & Indirect cost

Multiple Choice

What is direct factory wages?

• Wages of the people employed in the factory making the goods.

• Wages of people employed in the factory but who are not involved in the actual production process

Multiple Choice

__________ is the goods which are partly completed at the end of the financial year.

• Work in progress

• Cost of production

• Prime cost

• Manufacturing account