Midterm 1

Question 1

Raw materials

Answer 1

Beg raw materials inventory
+ raw materials purchased
_________________________________
= raw materials avail for use
- Ending raw materials inventory
_________________________________
= raw materials used in production

Question 2

Manufacturing cost

Answer 2

Direct Labour
+ Direct Materials
+ Manufacturing overhead
_________________________________
= total manufacturing costs

Question 3

Work in process (cogm)

Answer 3

Beginning work in process inventory
+ total manufacturing costs
_________________________________
= total work in process for the period
- ending work in process inventory
_________________________________
= cost of goods manufactured

Question 4

Finished goods (income statement/cost of goods sold statement)

Answer 4

Beginning finished goods inventory
+ cost of goods manufactured
_________________________________
= cost of goods available for sale
- ending finished goods inventory
_________________________________
= cost of goods sold

Question 5

Manufacturing overhead

Answer 5

Indirect material, indirect labour, insurance, amortization/depreciation, utilities, tax

Question 6

Prime cost

Answer 6

DM+DL

Question 7

Conversion cost

Answer 7

DL+MOH

Question 8

Product cost (manufacturing)

Answer 8

DM+DL+MOH

Question 9

Period Cost (non manufacturing cost)

Answer 9

Selling and administrative expenses

Question 10

Mixed cost

Answer 10

Costs that have both variable and fixed cost. Change in total but not proportionally. Ex. Electricity flat rate charge and usage charge.