Manufacturing Account 2

What is shown in a manufacturing account?

1 cost of material consumed

2 purchases of finished goods

3 cost of production

4 cost of sales

• 1 and 2 only

• 1 and 3 only

• 1, 2 and 3 only

• 1, 2, 3 and 4

Which group contains only items included in the prime cost of a manufacturer?

• direct expenses, depreciation of factory machinery, royalties

• direct wages, factory supervisor’s wages, factory insurance

• factory overheads, raw materials, direct expenses

• raw materials, royalties, direct labour

The work in progress of ZT Manufacturers on 1 January was valued at $6200. At the end of the year it was valued at $5400.

What was the effect on the cost of production for the year?

• decrease $800

• decrease $11 600

• increase $800

• increase $11 600

A manufacturing company provided the following information.

What was the cost of sales?

• $324 000

• $336 000

• $351 000

• $366 000

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

Which cost may be part of the prime cost for a manufacturing business?

• carriage inwards

• carriage outwards

• factory rent

• factory supervisor’s salary

A manufacturing business provided the following information. What was the factory cost of production?

• $234 000

• $238 000

• $276 000

• $280 000

A manufacturing business provided the following information for the year ended

30 November 2019

What was the total of the direct costs?

• $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 retail a wholesale business?

• cash

• office equipment

• trade receivables

• work in progress

Which is an indirect cost?

• carriage inwards

• factory rent

• production materials

• production wages