POA (Manufacturing Accounting)

Which of the following is a direct cost?

• A. Factory rent

• B. Production workers' wages

• C. Factory supervisor's salary

• D. Factory machine maintenance

Which of the following is required when calculating prime cost?

• A. Office wages

• B. Manufacturing wages

• C. Depreciation of machinery

• D. Factory water charges

Which of the following expenses would vary with the amount of goods produced?

• A. Wages paid to machine operators

• B. Works manager's salary

• C. Rent of factory production units

• D. Insurance premium on factory buildings

Ignoring work in progress, which one of the following statements correctly defines factory cost of production?

• A. Raw materials purchased plus indirect costs.

• Prime cost plus factory overheads.

• C. Prime cost minus factory overheads.

• D. Prime costs plus direct costs.

When preparing the final accounts of a manufacturing business, carriage inwards on raw materials should always be included in:

• A. the income statement

• B. the manufacturing account

• C. the trading account

• the appropriation account

For the year ended 31 December 2018, the prime cost was $80 000, factory overheads totalled $120 000, work in progress 1 January 2018 was $20 000 and at 31 December 2018 was $30 000. What was the cost of production of finished goods?

• A. $190 000

• B. $200 000

• C. $210 000

• D. $220 000

The following figures have been taken from the accounts of a manufacturing organization:

$

Cost of raw materials used 90 000

Direct wages 50 000

Indirect wages 30 000

Direct expenses 40 000

Indirect expenses 20 000

Which of the following figures represents the manufacturers' prime cost?

• A. $230 000

• B. $180 000

• C. $140 000

• D. $90 000

P. Hawk has a manufacturing business. The cost of his raw materials is $1 900. Rates and rent total $2 000 and factory wages amount to $2 500. The number of units produced is 1 640. What is the cost of producing ONE unit?

• A. $ 4

• B, $ 6

• C. $10

• D, $13

Which of the following may be used to calculate the cost of production?

• A. Prime cost + factory overheads - opening work in progress +

  closing work in progress.

• B..Prime cost - factory overheads - opening work in progress +

  closing work in progress.

• C. Prime cost + factory overheads - opening work in progress

  - closing work in progress.

• D. Prime cost + factory overheads + opening work in progress

  - closing work in progress.

Which of the following should be charged to the manufacturing account?

• A. Office rent

• B. Carriage on sales

• C. Managing Director's salary

• D. Carriage on raw materials