Answer:
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