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Question No.06: A - Work In Progress Inventory
Work In Progress - The Inventory which are in the process of production and incomplete
Finished Goods - The Inventory which are readyly available for sale
Cost of Goods Sold - It is the total cost apportioned for the cost of goods sold during the period
Raw Material - Raw Material Currently available for Production
Question No.07: True
Manufacturing overhead is any other manufacturing cost, besides direct labor and materials, incurred during the manufacture of the product. It includes expenses like the electricity bill, janitorial supplies, depreciation of the machines used, depreciation of the land where the manufacturing facility is located, and property taxes. Manufacturing overheads are all added together is included in the cost sheet at the end and is charged to the finished items.
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