Question

Presented below is a list of costs and expenses usually incurred by Barnum Corporation, a manufacturer of furniture in its factory. Classify the items into the following categories: (a) direct materials, (b) direct labor, (c) manufacturing overhead

1. salaries for assembly line inspectors
2. insurance on factory machine
3. property taxes on the factory building
4. factory repairs
5. upholstery used in manufacturing furniture
6. wages paid to assembly line workers
7. factory machinery depreciation
8. glue,nails,paint, and other small parts used in production
9. factory supervisors salaries
10. wood used in manufacturing furniture

Answer 1

Step-by-step explanation:

The direct material is the cost which is directly related to the manufacturing process of the product or we can say the raw material

The direct labor is the cost which is directly related to the manufacturing process of the product i.e wages paid, labors like - assembly line workers, etc

And the manufacturing overhead cost is the cost which is indirect in nature that means it dis not directly related i.e depreciation on equipment factory, property taxes etc

So, the categorization is shown below:

1. salaries for assembly line inspectors = Direct labor or manufacturing overhead

2. insurance on factory machine = manufacturing overhead

3. property taxes on the factory building = manufacturing overhead

4. factory repairs = manufacturing overhead

5. upholstery used in manufacturing furniture = direct material

6. wages paid to assembly line workers = direct labor

7. factory machinery depreciation = manufacturing overhead

8. glue,nails,paint, and other small parts used in production = manufacturing overhead

9. factory supervisors salaries = manufacturing overhead

10. wood used in manufacturing furniture = direct material