There Are Various Semi-Processed Materials Intended for Further Processing-Raw Stock

question 38

Multiple Choice

There are various semi-processed materials intended for further processing-raw stock, crude oil, bituminous coal, paperboard, paper, lumber, copper, wheat, cotton, for example. These materials are called _____________.

• A) supplies
• B) commodities
• C) raw materials
• D) semi-processed supplies
• E) production supplies

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company.

Underapplied Manufacturing Overhead

When the allocated manufacturing overhead cost is less than the actual overhead incurred.

Adjusted Cost of Goods Sold

The cost of goods sold figure that has been adjusted for any changes in inventory levels, ensuring it reflects the cost of goods actually sold during the period.

Underapplied Manufacturing Overhead

An occurrence where the overhead expenses budgeted for manufacturing fall short of the overhead costs that were truly incurred.