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Higher Accounts - Manufacturing

Total questions: 13

Worksheet time: 7mins

Name
Class
Date
1.

How do you calculate PRIME COST?

a)

Cost of Raw Materials Consumed plus Indirect Wages

b)

Cost of Raw Materials plus all Direct Costs

c)

Direct Costs plus Factory Overheads

d)

Factory Cost of Production plus Profit on Manufacture

2.

Which of these are an example of a Direct Cost?

a)

Royalties

b)

Production Wages

c)

Depreciation of Factory Machinery

d)

Factory Insurance

3.

How do you calculate Cost of Raw Materials Consumed?

a)

Opening Inventory of Finished Goods + Purchases - Closing Inventory of Finished Goods

b)

Closing Inventory of Raw Materials + Purchases - Opening Inventory of Raw Materials

c)

Opening Inventory of Raw Materials + Purchases - Closing Inventory of Raw Materials

d)

Purchases - Carriage In + Purchase Returns

4.

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

a)

Depreciation of Factory Machinery

b)

Factory Rates

c)

Factory Insurance

d)

Direct Expenses

5.

Which column do Factory Overheads appear in?

a)

First

b)

Middle

c)

Last

6.

In the Manufacturing Account which column would you find Opening and Closing Inventory?

a)

First

b)

Middle

c)

Last

7.

Where do Warehouse Wages appear in the final accounts of a company who manufactures?

a)

Prime Cost section

b)

Trading Account

c)

Factory Overheads

d)

Any Other Income

8.

Factory Cost of Production = £200,000 but Wholesale Value of Goods is £230,000. How should this be dealt with?

a)

Loss on Manufacture of £30,000 deducted from Gross Profit

b)

Profit on Manufacture of £30,000 added to Profit for the Year

c)

Profit on Manufacture of £30,000 added to Gross Profit

d)

Loss on Manufacture of £30,000 deducted from Profit for the Year

9.

Rates of £10,000 should be shared 3:2 between the factory and the warehouse. How much should be entered into the Factory Overheads section of the Manufacturing Account.

a)

£3,000

b)

£4,000

c)

£5,000

d)

£6,000

10.

Factory Cost of Production is £100,000. However a loss on manufacture of £5,000 was made. What is the Wholesale Value of Goods?

a)

£105,000

b)

£100,000

c)

£85,000

d)

£95,000

11.

Which of these is an example of a factory overhead?

a)

Royalties

b)

Production Wages

c)

Office Expenses

d)

Discount Allowed

12.

Which of these are types of inventory (tick all that apply)

a)

Purchases

b)

Finished Goods

c)

WIP

d)

Raw Materials

13.

What is the difference between Factory Cost of Production and Market Value of Production

(a)