Manufacturing grade 10

Name three types of inventory in manufacturing business

(a)  

• $111 000

• $116 000

• $127 000

• $152 000

What would be included in the statement of financial position of a manufacturing business but not a wholesale business?

• cash

• office equipment

• trade receivables

• work in progress

The following costs were incurred by a clothing manufacturer.

1 purchase of fabric

2 purchase of buttons

3 repairs to sewing machine

4 wages of factory supervisors

5 wages of sewing machinists

Which costs are indirect costs?

• 1, 2 and 5

• 1, 4 and 5

• 2 and 3

• 3 and 4

A manufacturer calculated the cost of production for the year at $57 000.

It was found that lighting and heating, $2000, had been omitted from the financial statements.

Lighting and heating is allocated 75% to the factory and 25% to the offices.

What was the correct cost of production?

• $55 500

• $56 500

• $57 500

• $58 500

How does a manufacturer calculate prime cost?

• direct material + direct labour

• direct material + direct labour + direct expenses

• direct material + direct labour + direct expenses + factory overheads

• direct material + direct labour + factory overheads

• $186 000

• $261 000

• $293 000

• $380 000

• $346 000

• $410 000

• $580 000

• $644 000

How is cost of production calculated?

• direct material + direct labour

• direct material + direct labour + factory overheads

• direct material + direct labour + factory overheads + increase in work in progress

• direct material + direct labour + factory overheads – increase in work in progress

• A

• B

• C

• D