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A/L ACCOUNTING 2021 BATCH - MANUFACTURING STATEMENT

Total questions: 20

Worksheet time: 32mins

Name
Class
Date
1.

Select the incorrect relationship

a)

Prime cost = Direct material Cost + Direct Labour + Direct expenses

b)

Manufacturing Overheads = Indirect material Cost + Indirect Labour + Indirect expenses

c)

Total manufacturing cost = Prime cost + Manufacturing Overheads

d)

Gross Profit = Sales - Cost of Production

e)

Net Profit = Gross profit - Non Manufacturing Overheads

2.

In a manufacturing organization, the cost components which are exclusively used only to calculate the cost of Inventory

a)

Direct wages ,Carriage inwards ,Carriage Outwards, Raw Material

b)

Direct wages, Carriage Outwards, Storage Cost , Machinery depreciation

c)

Machinery depreciation, Raw Material, Carriage inwards ,Direct wages

d)

Carriage Outwards, Raw Material , Direct wages, Machinery depreciation

e)

Carriage Outwards, Raw Material, Storage Cost , Machinery depreciation

3.

Amal Limited is a manufacturing firm.

Above given information(picture) is relevant to the month of December 2020.

What is the Prime Cost for the month of December 2020?

(a)  

4.

Amal Limited is a manufacturing firm.

Above given information(picture) is relevant to the month of December 2020.

What is the amount that should be transferred to the trading account from the manufacturing account for the month of December 2020

(a)  

5.

Calculate the prime cost for the year 2020 using the information given above(in the picture)

(a)  

6.

Calculate the raw material consumed for the year 2020 using the information given above(in the picture)

(a)  

7.

Production cost of goods is treated as assets until they are sold .


Select the correct answer from below

a)

Above statement is true

b)

Above statement is false

8.

Fill in the blank

When the production of the goods is more towards the nature of the raw material, the work in progress stock is valued at (a)  

9.

What is the cost of goods manufactured?

a)

Rs.3 000

b)

Rs.4 000

c)

Rs.5 000

d)

Rs.6 000

e)

Rs.7 000

10.

Give an example for 'direct wages cost in a bakery'.

(a)  

11.

Calculate the cost of raw material purchased using the above information.

(a)  

12.

How much is the production overheads?

(a)  

13.

Which of the below mentioned cost items incurred in a manufacturing firm would be classified as direct cost

A- Wages paid to employees based on the number of units manufactured

B- Monthly salary paid to the production manager

C- Transport cost incurred in bringing the raw material in to the factory

D- Depreciation of the machine used in the factory

a)

A & B only

b)

A & C only

c)

B & C only

d)

A , B & D only

e)

A , B & C only

14.

What was the cost of sales for the period before considering the above additional information?

a)

Rs.1 250 000

b)

Rs.1 300 000

c)

Rs.1 350 000

d)

Rs.1 400 000

e)

Rs.1 500 000

15.

What was the manufacturing cost for the period after considering the above additional information?

a)

Rs.1 330 000

b)

Rs.1 390 000

c)

Rs.1 400 000

d)

Rs.1 410 000

e)

Rs.1 470 000

16.

What is the gross profit earned during the month?

(a)  

17.

Which of the following equation does not represent the Total cost?

a)

Total cost = Product cost + Non manufacturing cost

b)

Total cost = Manufacturing cost + Non manufacturing cost

c)

Total cost = Prime cost + Total overhead cost

d)

Total cost = Direct cost + Indirect cost

e)

Total cost = Manufacturing cost + Total overhead cost

18.

Which of the following cost items of a furniture manufacturing organization can be categorized as components of prime cost?

a)

Wages of carpenters

b)

Electricity charges of the factory

c)

Cost of wood used

d)

Depreciation of machinery

e)

Production Manager's salary

19.

What is the Journal entry followed in transferring factory finished goods to the sales division?

(a)  

20.

The prime cost and the total production cost of a manufacturing business for the year ending 31.03.2019 were Rs.900 000 and Rs.1 600 000 respectively.

The work-in-progress inventories, which were measured at production cost as at 31.032018 and 31.03.2019 were Rs.200 000 and Rs.330 000 respectively.

What is the production overheads for the year ending 31.03.2019?

a)

Rs.570 000

b)

Rs.700 000

c)

Rs.830 000

d)

Rs.900 000

e)

Rs.1 030 000