Chapter 26 – Accounting for Manufacturing Activities
26–41
77. Define the term manufacturing overhead and give three examples of manufacturing
overhead for a bakery.
78. Using only the relevant items from the information given, determine the total product cost
for Donnybrook Corporation, a manufacturer of children’s furniture. All materials purchased
were used in inventory during the current period. There was no beginning inventory.
Chapter 26 – Accounting for Manufacturing Activities
26–52
26–53
Chapter 26 – Accounting for Manufacturing Activities
26–56
Chapter 26 – Accounting for Manufacturing Activities
Matching Questions
89. Match the following terms with the definitions provided.
1. The account to which all items on the statement of
cost of goods manufactured are closed
Indirect Labor
8
2. A financial report showing details of the cost of
goods completed for a manufacturing business
Finished Goods
Inventory
9
3. The materials placed into production
Raw Materials
3
4. Partially completed units in the production
process
Work in Process
4
5. All manufacturing costs that are not classified as
direct materials or direct labor
Direct Labor
10
6. Materials used in manufacturing a product that do
not become a part of the product
Direct Materials
7
7. All items that go into a product and become a part
of it
Indirect Materials
and Supplies
6
8. Costs attributable to personnel who support
production but are not directly involved in the
manufacture of a product; for example, supervisory,
repair and maintenance, and janitorial staff
Manufacturing
Overhead
5
9. The cost of completed products ready for sale;
corresponds to the Merchandise Inventory account of
a merchandising business
Statement of Cost of
Goods Manufactured
2
10. The costs attributable to personnel who work
directly on the product being manufactured
Manufacturing
Summary Account
1