Question

Match each term on the left with the best definition on the right. Note: Not all definitions will be used.

Answer 1

Answer:

A. Indirect materials.

B. Cost of goods manufactured

C. Raw material inventory

D. Actual manufacturing overhead

E. Direct materials.

F. Applied manufacturing overhead

G. Work in process inventory

H. Cost of goods sold.

I. Finished goods inventory.

Explanation:

A. Materials that cannot be directly or conveniently traced to a specific unit or job: Indirect materials.

B. Total production cost assigned to goods that were produced during the period:  Cost of goods manufactured.

C. Cost of materials purchased from suppliers that have not yet been used in production: Raw material inventory.

D. Actual amount of indirect manufacturing costs incurred during the period: Actual manufacturing overhead.

E. Materials that can be directly and conveniently traced to a specific unit or job: Direct materials.

F. Indirect manufacturing costs that have been assigned to a specific unit or job using a predetermined overhead rate: Applied manufacturing overhead.

G. Cost of units or jobs that are incomplete at any given point in time: Work in process inventory.

H. Total manufacturing cost of jobs or units sold during the period: Cost of goods sold.

I. Costs of all units completed and ready for sale at any given point in time: Finished goods inventory.