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WorksheetsManufacturing Account
Total questions: 20
Worksheet time: 11mins
Manufacturing Account is prepared to calculate
Cost of capital
Cost of sales
Cost of goods sold
Cost of production
Manufacturing Account does not include
Direct and Indirect cost
Prime and Factory Overhead cost
Administrative & Selling cost
Direct & Indirect cost
Cost of Raw Material does not include
Opening stock of raw material
Purchase of raw material
Carriage on raw material
Closing stock of raw material
Depreciation on machinery used for production is recorded in
Prime cost
Factory cost
Trading expense
Profit & Loss expense
Expense on acquiring patent is
part of factory cost
part of trading cost
part of prime cost
part of selling cost
Manufacturing business has
1 type of inventory
2 types of inventory
3 types of inventory
4 types of inventory
Work-in progress means goods which are
partially completed
completed
ready for sale
ready for packing
What is included in Trading A/C section of Manufacturing business but not in other type of business
Purchase of finished goods
Cost of production
Carriage on purchase of finished goods
Inventory of finished goods
What entry is passed for purchase of raw material
Trade Payable Dr
Bank Dr
Manufacturing A/C Cr
Manufacturing A/C Dr
Salary of factory manager is a
Direct ecpense
Indirect expense
Variable expense
Semi-variable expense
Rent of factory shed is a
Variable expense
Semi-variable expense
Indirect expense
Direct expense
Wages of machine operator is a
Direct expense
Indirect expense
Fixed expense
Semi-variable expense
Electricity consumption is a
Direcy expense
Indirect expense
Variable expense
Semi-variable expense
Prime cost is sum of
DM+DW+DE-WIP
DM+DW-DE
DM+DW+DE
DM+DW+DE+WIP
Increase in WIP is..........to the sum of factory cost and prime cost
added
subtracted
not adjusted
None
A manufacturing busuness prepares
Manufacturing A/C
Trading A/C
Profit & Loss A/C
All 3
Opening stock of finished goods............purchase of finished goods............cost of production............closing stock of finished goods is cost of sales of manufacturing business
(a)
A manufacturer will purchase some finished goods and not make them when
production does not meet demand
cheaper to buy than make
items cannot be made in the factory
All 3
Calculate the cost of production
PC = Prime Cost = 135000
FO = Factory Overhead = 85000
Op WIP = 19000
Cl WIP = 21000
2,22,000
2,18,000
2,20,000
2,39,000
Manufacturing Account is prepared by
Trader
Producer
Person in service
None
