Acquisition cost of raw material to be used in manufacturing

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June 7th, 2024

Acquisition cost of raw material to be used in manufacturing and become component of cost object is classified asdirect material costsindirect material costsdirect labor costs Wages and other benefits provided to assembly line workers and operators of machine is classified aswork in process costfinished costsdirect manufacturing labor costsindirect manufacturing labor costs Conversion cost is subtracted from manufacturing overhead cost to calculatemanufacturing labor costsdirect labor costsdirect manufacturing labor costsindirect manufacturing labor costsindirect labor costsLabor which works as forklift truck, plant guards and rework labor is classified asprime overheadconversion overheadfactory overheadmanufacturing overhead

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