Instructions: Classify the following manufacturing costs and expenses by using t
ID: 2536963 • Letter: I
Question
Instructions: Classify the following manufacturing costs and expenses by using the following code letters: A. B. C. D. Direct materials cost Direct labor cost Manufacturing overhead cost Period cost Brooks Manufacturing Company incurs the following costs and expenses in making furniture: 1. nsurance on factory building 2. Oak and pine wood used in desks and chairs 3. Lubricants, rosin, and polishing compounds used in manufacturing Advertising in trade magazines 5 Rent on leased factory machinery 6. Wages of assembly line workers 7. Salesperson's commissions 8. Depreciation on delivery equipment 9. Depreciation on factory machinery 10. Wages of factory maintenance workersExplanation / Answer
Sl. No. Classification Reason 1 Manufacturing Overhead cost Since this expense is indirectly done in relation to Manufacturing 2 Direct materials cost Since these materials are directly used in production 3 Manufacturing Overhead cost Since these are indirect materials which form part of overhead 4 Period costs Since these have no direct relation with manufacturing 5 Manufacturing Overhead cost Since this expense is indirectly done in relation to Manufacturing 6 Direct labor cost Since these workers are directly involved in production 7 Period costs Since these have no direct relation with manufacturing 8 Manufacturing Overhead cost Since this expense is indirectly done in relation to Manufacturing 9 Manufacturing Overhead cost Since this expense is indirectly done in relation to Manufacturing 10 Manufacturing Overhead cost Since this expense is indirectly done in relation to Manufacturing