List the following activities in the order in which they occur, with the first activity on top:

Materials, Production, Sales.

Which of the following items would be included in the Manufacturing Overhead section of the statement of cost of goods manufactured?

1. Direct labor

2. Raw materials used

3. Indirect materials and supplies

4. Repairs to factory building

5. Depreciation of factory equipment

6. Office supplies expense

7. Advertising expense

The materials are the direct materials or the raw materials that are worked on. Production means manufacturing or making. It includes all expenses directly or indirectly linked with the Production such as direct labor and Manufacturing Overheads etc. Manufacturing overheads only include those expenses which are indirectly used in the production. Expenses with sales are used for the storage or sales of products.

Explanation:

Materials,

2. Raw materials used

Production, includes Direct Labor and Manufacturing Overheads

1. Direct labor

Manufacturing Overhead would include

3. Indirect materials and supplies

4. Repairs to factory building

5. Depreciation of factory equipment

Sales include

6. Office supplies expense

7. Advertising expense

Manufacturing Overhead would include

3. Indirect materials and supplies

4. Repairs to factory building

5. Depreciation of factory equipment