Manufacturing Costs(Quick Test)

1. The manufacturing costs considered to be direct product costs are direct materials and direct __________.

2. The manufacturing costs which are indirect product costs are the fixed and variable manufacturing __________ costs.

3. A manufacturer’s inventory classifications are raw materials,__________ __________ __________, and finished goods.

4. A manufacturer will have cost of goods __________ whereas a retailer will have cost of goods purchased.

5. The difference between full absorption costing and variable (or direct) costing involves the assigning or not assigning of __________ manufacturing overhead.

6. Words such as theoretical, practical, normal, and expected are used when discussing a factory’s productive __________.

7. The ideal basis for assigning manufacturing overhead costs will involve a __________-and-effect relationship.

8. Instead of spreading manufacturing overhead costs on the basis of direct labor hours or production machine hours, a more sophisticated and logical method is __________-based costing.

9. The manufacturing overhead costs are considered to be __________ costs.

10. Conversion costs consist of __________.

11. Prime costs consist of __________.

12. The factory’s maintenance department is a __________ department.

13. The cost that is both a prime cost and a conversion cost is __________.

14. Under conventional costing, the depreciation of the assembly line is a __________.

15. Under conventional costing, maintenance of the manufacturing equipment is __________ __________ __________ cost.

16. The cost of the labor to maintain the manufacturing equipment is __________ __________ cost of the maintenance department.

17. Manufacturing overhead is __________ __________ product cost.

18. The __________ costing system is likely to be used for the manufacturing of a basic cabinet carried in inventory by many of the national home improvement centers.

19. The __________ costing system is likely to be used for the manufacturing of a custom made display counter.

20. Variable and fixed manufacturing overhead costs are allocated to products for external reporting purposes because of __________.

21. Predetermined overhead rates are likely to be calculated by using __________ __________ amounts.

22. Manufacturing overhead costs that are actually incurred are recorded by a __________ to a manufacturing overhead account.

23. The manufacturing overhead costs applied to products will be recorded as a __________ in the account Overhead Applied.

24. Factory supplies.

25. Fuel for the fork lift trucks used in the manufacturing area.

26. Hourly wages for operators of the production machines.

27. The cost of water for washing the parts that were manufactured.

28. Insurance on the factory building and equipment.

29. Factory service department costs are likely to be part of this.

30. Lubricants for factory equipment.

31. Interest on loans associated with finished goods.

32. This product cost is most likely to contain some fixed costs.

33. Corporate office administration expenses.

34. Real estate taxes on a building used for manufacturing.

35. Likely to be absorbed by products through a predetermined annual rate.

36. The flour used by a bakery producing bread and rolls.

37. The commissions earned by reps selling the manufactured products.

38. The freight-in on raw materials used in the manufacturing process.

39. The freight for shipping finished goods to customers.

40. The payroll taxes applicable to the direct labor wages.