Question

From the list below, select the items that are classified as a materials activity(You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)

- Raw materials used
- Raw materials beginning inventory
- Raw materials purchases
- Work in process beginning inventory
- Goods manufactured
- Direct labor used
- Factor overhead used

Answer 1

Materials activity in business refers to stages related to raw materials use in manufacturing. Items classified as materials activity include raw materials used and raw materials purchases, but not work in process, finished goods, or labor costs.

Step-by-step explanation:

In the context of accounting and cost management in business, materials activity pertains to the various stages and actions related to the use of raw materials in manufacturing. When identifying items that are classified as a materials activity, we consider those that directly involve the handling and use of raw materials in the production process.

• Raw materials used: This involves the actual amount of raw materials that have been put into production.
• Raw materials beginning inventory: It represents the stock of raw materials available at the beginning of the period.
• Raw materials purchases: This includes all acquisitions of raw materials needed for production during a particular period.

Other elements such as work in process beginning inventory, goods manufactured, direct labor used, and factory overhead used, while crucial to the production process, are not classified as a materials activity as they either represent different stages in manufacturing (like work in process and goods manufactured) or types of costs (like direct labor and factory overhead).