Merchandisers . . . Buy finished goods. Sell finished goods. . Manufacturers . . . Buy raw materials. Produce and sell finished goods. Next Page Click Here. MegaLoMart. Comparing Merchandising and Manufacturing Activities. Next Page Click Here. Direct Materials. Direct Labor.
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Buy finished goods.
Sell finished goods.
Manufacturers . . .
Buy raw materials.
Produce and sell finished goods.
MegaLoMartComparing Merchandisingand Manufacturing Activities
Wages paid to employees who are not directly involved in production.Examples: maintenance workers, janitors and security guards.
Materials used to support the production process. Examples:lubricants and cleaning supplies used in the automobile assembly plant.Factory Overhead
Manufacturing costs that cannot be traced directly to specific units produced.
Examples:Indirect labor and indirect materials
Materials waiting to be processed.
Partially complete products – some material, labor, or overhead has been added.
Completed products awaiting sale.Balance Sheet