Font size
WorksheetsManufacturing Account review graded work
Total questions: 26
Worksheet time: 14mins
A __________ is part of the annual financial statements and is used to calculate the cost of goods produced.
Manufacturing account
Prime cost
Cost of production
Work in progress
_______ is the total of the direct materials, direct labour and direct expenses. It is the cost of the essentials necessary for production.
Manufacturing account
Prime cost
Cost of production
Work in progress
__________ is prime cost plus factory overheads, adjusted for any work in progress at the start and at the end of the year. It is the total cost of manufacturing the goods completed.
Manufacturing account
Prime cost
Cost of production
Work in progress
__________ is the goods which are partly completed at the end of the financial year.
Work in progress
Cost of production
Prime cost
Manufacturing account
How is prime cost calculated?
Direct materials + carriage outwards + other direct costs
Direct materials + carriage inwards + other direct costs
Direct materials + carriage inwards + indirect expenses
Direct materials + carriage outwards + indirect expenses
What is direct factory wages?
Wages of the people employed in the factory making the goods.
Wages of people employed in the factory but who are not involved in the actual production process
What is indirect factory wages?
Wages of people employed in the factory but who are not involved in the actual production process.
Wages of the people employed in the factory making the goods.
Royalties and hire of a special machine, or any other suitable direct expense.
Total of the direct materials, direct labour and direct expenses. It is the cost of the essentials necessary for production.
State an alternative term for factory overheads.
Indirect factory expenses.
Prime cost
Direct labour
Direct expenses
What is the formula for cost of material consumed?
Opening inventory + Purchases of raw materials + Carriage inward − Closing inventory
Cost of materials consumed + Direct wages
Prime cost + Factory overheads
What is the formula for cost of sales?
Opening inventory + Purchases – Closing inventory
Prime cost + factory overheads
Gross profit + income - expenses
What is direct material cost?
The cost of the raw material being used.
A form of direct costs that can be directly traced to the manufacture of an item,
The cost of labour that can be directly traced to the manufacture of an item
Which of the following elements of a manufacturing account matches the definition below:
The raw materials actually used to manufacture the product (e.g. cloth used to produce shirts, flour used to produce bread)
Direct materials
Direct wages
Indirect materials
Direct expenses
Prime cost include
Cost of Raw material consumed
Cost of sales
Cost of production
Work-in-progress
Which of these are an example of a Direct Cost?
Royalties
Salary of factory manager
Depreciation of Factory Machinery
Factory Insurance
Which of these is not an example of a Factory Overhead?
Depreciation of factory Machinery
Factory Rates
Factory Insurance
Depreciation of office machinery
Manufacturing Account does not include
Direct and Indirect cost
Prime and Factory Overhead cost
Administrative & Selling cost
Direct & Indirect cost
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
Work-in progress means goods which are
partially completed
completed
ready for sale
ready for packing
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
A manufacturing busuness prepares
Manufacturing A/C
Trading A/C
Profit & Loss A/C
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
