Match each key manufacturing account component on the left with its corresponding accounting formula or descriptive definition on the right.
- Cost of Raw Materials ConsumedOpening stock of raw materials + Purchases of raw materials + Carriage inwards - Closing stock of raw materials
- Prime CostCost of raw materials consumed + Direct factory labor wages + Direct manufacturing expenses
- Factory OverheadsIndirect production expenses such as factory power, factory supervisor salaries, and plant depreciation
- Cost of ProductionPrime cost + Factory overheads + Opening work-in-progress - Closing work-in-progress
Cevap
Cost of Raw Materials Consumed matches Opening stock of raw materials + Purchases of raw materials + Carriage inwards - Closing stock of raw materials; Prime Cost matches Cost of raw materials consumed + Direct factory labor wages + Direct manufacturing expenses; Factory Overheads matches Indirect production expenses such as factory power, factory supervisor salaries, and plant depreciation; Cost of Production matches Prime cost + Factory overheads + Opening work-in-progress - Closing work-in-progress.
Each manufacturing cost term aligns with its correct standard accounting definition. Cost of Raw Materials Consumed measures materials physically used; Prime Cost aggregates direct expenses; Factory Overheads encompass indirect plant costs; and Cost of Production combines prime cost and overheads adjusted for net work-in-progress.
Adım Adım Çözüm
Anahtar Kavram
Manufacturing Account Components and Cost Structure Determination