Manufacturing Accounts Questions and Answers

S. Samanyika Toy Products had opening raw material stock of $11 400, purchases of raw materials of $54 000, and closing raw material stock of $1 400 for the year ended 31 December 2009. What was the cost of raw materials consumed?

S. Samanyika Toy Products' Manufacturing Account for the year ended 31 December 2009 arrived at a prime cost of $93 600, total factory overheads of $99 800 (after adding indirect expenses), and a figure of $103 800 after adding opening work in progress. What was the total cost of production, after also deducting the closing work in progress of $11 500?

Mwanza Manufacturing Company had opening raw material stock of $13 000, purchases of raw materials of $67 000, freight charged on raw materials of $3 000, and closing raw material stock of $25 000 for the year ended 31 December 2010. What was the cost of raw materials consumed?

Mwanza Manufacturing Company's Manufacturing Account for the year ended 31 December 2010 showed a prime cost of $78 000 and total factory overheads/production cost of goods manufactured of $97 000. In the Trading Account, sales were $150 000, and cost of sales (opening finished goods stock $14 000 plus production cost $97 000 less closing finished goods stock $24 000) was $87 000. What was the gross profit?

D. Dlodlo, a retailer, sold goods with a cost price of $8 500 on credit to A. Mashamba for $9 500. What is the effect of this transaction on working capital: increase, decrease, or no effect?

A manufacturing company's raw materials inventory on 1 January was $4 800, purchases of raw materials during the year were $17 250, and carriage inwards was $935. Raw materials inventory on 31 December was $2 550. Calculate the cost of raw materials consumed for the year.

A manufacturing company's cost of raw materials consumed for the year was $20 435 and its direct factory wages were $14 500. Calculate the prime cost.

T. Zvinowanda's trial balance showed opening inventory of raw materials $30 600 at 1 January 2021, purchases of raw materials of $104 000 during the year, and closing inventory of raw materials of $33 000 at 31 December 2021. Calculate the cost of raw materials consumed for the year.

T. Zvinowanda's cost of raw materials consumed for the year was $101 600. Direct wages paid were $18 000, with a further $3 000 owing at the year end. Royalties of $10 000 were also paid, a direct cost. Calculate the prime cost for the year.