Categories
Uncategorized

Indicate whether each of the following costs associated with production would be classified as direct materials, direct labor, or manufacturing overhead.

Manufacturing Cost Terms. Indicate whether each of the following costs associated with production would be classified as direct materials, direct labor, or manufacturing overhead.
Choice:
1 Salaried supervisor responsible for several product lines 
2 Hourly workers assembling goods 
3 Grease used to maintain machines 
4 Maintenance personnel 
5 Bike frame used to build a racing bike 
6 Factory property taxes 
7 Glue used to assemble toys 
8 Depreciation on production equipment 
9 Paint used to produce wagons 
10 Accounting staff performing tax services for a client 
11 Nails used to assemble cabinets 
12 Fiberglass used to produce a custom boat 
14 Factory utilities 
Manufacturing and Nonmanufacturing Cost Terms. Burns Company incurred costs for the following items.
Required:
a. Indicate whether each item should be categorized as a product or period cost.
b. Indicate whether each item should be categorized as direct materials, direct labor, manufacturing overhead, selling, or general and administrative.
Product or PeriodDM, DL, MOH, Sell, G&A
 Salary of chief financial officer  
 Factory insurance  
 Salary for salespeople  
 Raw materials used in production easily traced to the product  
 Computer equipment depreciation for accounting department  
 Insurance for headquarters building  
 Production line workers  
 Clerical support for production supervisors  
 Janitorial services in the production facility  
 Personnel department supplies  
 Newspaper advertisements  
 Supervisor of several production lines  
 Insurance for factory equipment  
 Production line workers  
 Clerical support for sales staff  

Leave a Reply

Your email address will not be published. Required fields are marked *