Presented below is a list of costs and expenses usually incurred by Barnum Corporation, a manufacturer of furniture, in its factory.
- Salaries for assemble line inspectors.
- Insurance on factory machines
- Property taxes on the factory building.
- Factory repairs.
- Upholstery used in manufacturing furniture.
- Wages paid to assemble line workers.
- Factory machinery depreciation.
- Glue, nails, paint, and other small parts used in products.
- Factory supervisors' salaries.
- Wood used in manufacturing furniture.
Instructions
Classify the above items into the following categories: (a) Direct materials, (b) Direct labor, and (c) Manufacturing overhead.
Solution
- (b) Direct Labor
- (c) Manufacturing overhead
- (c) Manufacturing overhead
- (c) Manufacturing overhead
- (a) Direct materials
- (b) Direct Labor
- (c) Manufacturing overhead
- (c) Manufacturing overhead
- (c) Manufacturing overhead
- (a) Direct materials
