Question

Select all of the following manufacturing cost elements that occur in a process cost system.

a. Direct materials.
b. Direct labor.
c . Manufacturing overhead.
d. All of these.

Answer 1

In a process cost system, all manufacturing cost elements like direct materials, direct labor, and manufacturing overhead occur. Hence, the correct answer is 'd. All of these'.

Step-by-step explanation:

In a process cost system, the manufacturing cost elements that occur are:

• Direct materials: This refers to the raw materials that are used directly in the production of goods.
• Direct labor: These are the wages paid to workers who are directly involved in the production process.
• Manufacturing overhead: This encompasses all other costs associated with the production process that are not direct materials or direct labor, such as rent, utilities, and depreciation on factory equipment.

All of these are essential components of the manufacturing cost in a process cost system. Therefore, the answer to the question would be d. All of these.