18. Manufacturing Accounts Flashcards
1
Q
In the calculation for COS, what is purchases replaced by for a manufacturing company?
A
Cost of Finished Goods Produced
2
Q
What are direct factory costs?
A
Costs that increase with each unit of production
3
Q
What are prime costs?
A
Total costs of direct material, direct labour and direct expenses (Raw materials used + direct factory cost)
4
Q
What are production overheads?
A
Costs that do not vary with production e.g. supervisor salary, business rates, light heat and power
5
Q
What are factory costs of production?
A
Prime cost plus production overheads
6
Q
What are factory costs of finished goods?
A
Factory cost of production adjusted for changes in work in progress
7
Q
What is work in progress?
A
Goods in the production process that are not yet finished
