Font size
WorksheetsSimplifacturing by Jaye and Franz (BSA 1B)
Total questions: 20
Worksheet time: 11mins
What is the primary difference between merchandising and manufacturing businesses?
Merchandising businesses sell finished products, while manufacturing businesses buy raw materials and convert them into finished goods
Merchandising businesses buy raw materials, while manufacturing businesses sell finished products
Both manufacturing and merchandising businesses only sell products
Manufacturing businesses focus on selling, while merchandising businesses focus on production
To what element of manufacturing costs does Indirect Labor belong?
Finished Goods Inventory
Raw Materials
Manufacturing Overhead
Direct Labor
Glue, thread, nails, rivets, and lubricants are examples of
Direct Materials
Manufacturing Overhead
Direct Labor
The wages paid to office supervisors are an example of indirect labor
True
False
Which of the following is not typically part of the direct materials in a manufacturing cost structure?
Raw materials
Components that become part of the finished product
Packaging materials for final goods
Indirect materials like cleaning supplies used in the factory
Which of the following is NOT typically included in manufacturing overhead?
Factory Supplies
Direct Labor
Utilities used in the factory
Depreciation on factory equipment
Prime Costs = Direct Materials + ?
(a)
? = Direct Labor + Manufacturing Overhead
Conversion Costs
Cost of Goods Manufactured
Prime Costs
Secondary Costs
Which of the following is considered a prime cost in manufacturing?
Direct Labor only
Manufacturing overhead only
Direct materials and direct labor
Direct materials and manufacturing overhead
Prime costs consist of direct materials and direct labor. Conversion cost is essentially direct labor
True
False
What are conversion costs made up of?
Direct materials and manufacturing overhead
Direct labor and manufacturing overhead
Direct materials and direct labor
Direct labor only
If Direct Labor is 25,000, Direct Materials is 48,000, and Manufacturing Overhead is 32,000. How much is the Prime Costs?
105,000
80,000
48,000
73,000
If a manufacturing entity's direct materials cost 15,000, direct labor is 12,000, and manufacturing overhead costs 8,000. What is the total prime cost?
15,000
27,000
20,000
35,000
Finished goods inventory is an asset, but inventories of raw materials and work in process are not considered assets until production is complete
True
False
A manufacturing entity usually has two separate inventories
True
False
It is the cost of unused direct materials at period end
Merchandise Inventory
Work in Process Inventory
Factory Supplies Inventory
Raw Materials Inventory
Which of the following inventory account/s is unique to a manufacturing business?
Finished goods inventory
Work in process inventory
Raw materials inventory
All of the above
Manufacturing costs would not include
Depreciation on factory equipment
Indirect labor costs
Indirect materials used
Sales salaries expense
How do we compute for the Net Purchases—Raw Materials?
Purchases less Purchase Returns & Allowances and Purchase Discounts
Purchases add Purchase Discount less Purchase Return & Allowances
Purchases add Purchase Return & Allowances and Purchase Discounts
What does the cost of goods sold include?
Finished goods inventory, beginning + Cost of goods manufactured - Finished goods inventory, end
Finished goods inventory, end + work in process inventory, end
Direct materials used + direct labor costs
Raw materials inventory, beginning + direct labor + manufacturing overhead
