Discussion Points - Manufacturing accounts

What is the formula for Prime Costs?

• Direct Materials + Direct Labour + Factory overheads

• Direct Materials + Direct Labour + Direct Expenses

• Direct materials + Factory overheads

• Direct Materials + Direct Labour + Factory overheads + Opening WIP - Closin WIP

Total manufacturing costs =

• Direct Materials + Direct Labour + Factory overheads

• Direct Materials + Direct Labour + Direct Expenses

• Direct materials + Factory overheads

• Direct Labour + Factory overheads

Selling and Administrative expenses are examples of direct expenses

• TRUE

• FALSE

What is the formula for COGS in a manufacturing company?

• Cost of production + Opening WIP - Closing WIP

• Cost of production - Opening WIP +Closing WIP

• Opening Finished goods inventory - Cost of production for completed units - closing finished goods inventory

• Opening Finished goods inventory + Cost of production for completed units - closing finished goods inventory

Total production cost for completed pencils is $582,000. 6000 units of pencils were produced, how much is the manufacturing cost per unit?

What is the formula for the cost of production for completed units?

• Direct Materials + Direct Labour + Factory overheads

• Direct Materials + Direct Labour + Direct Expenses

• Direct materials + Factory overheads

• Direct Materials + Direct Labour + Factory overheads + Opening WIP - Closin WIP