Fill in the blanks

Question 1

The work of factory employees that can be physically and directly associated with converting raw materials into products is classified as _____________

Answer 1

direct labour

Question 2

Indirect materials and indirect labour are classified as ______________

Answer 2

Manufacturing overhead

Question 3

Direct materials and direct labour are referred to as ______________ costs while direct labour and manufacturing overhead are often referred to as ______________costs

Answer 3

prime, conversion

Question 4

___________ is added to direct labour and manufacturing overhead to get total manufacturing costs for the current period

Answer 4

direct materials used

Question 5

A major difference between the income statements of a merchandising company and a manufacturing company is tat the cost of goods section of a merchandising company shows cost of goods ________________. whereas a manufacturing company shows cost of goods ______________.

Answer 5

purchased, manufactured