Chapter 10 - Manufaturing

Manufacturers buy raw materials and sell them to customers/consumers.

• True

• False

These materials become a physical part of a finished product. Their costs can be conveniently and economically traceable to the finished product

• Indirect Materials

• Raw Materials

• Direct Materials

• Tangible Materials

This account gives the costs of the goods that are in the manufacturing process but are not yet complete at the end of accounting period.

• Finished Goods Inventory.  

• Work in Process Inventory.

• Raw Materials Inventory.

• Factory Supplies Inventory

This account holds the costs of direct materials on hand that is intended for use in the manufacturing process..

• Finished Goods Inventory.  

• Work in Process Inventory.

• Raw Materials Inventory.

• Factory Supplies Inventory

It is the compensation of employees or workers who physically convert raw materials into finished goods

• Direct Material

• Indirect Material

• Direct Labor

• Manufacturing Overhead