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

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Instructions

Solution

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