Presented below and on the next page is a list of costs and expenses usually incurred by Barnum Corporation, a manufacturer of furniture, in its factory.
- Salaries for assembly line inspectors.
- Insurance on factory machines.
- Property taxes on the factory building.
- Factory repairs.
- Upholstery used in manufacturing furniture.
- Wages paid to assembly line workers.
- Factory machinery depreciation.
- Glue, nails, paint, and other small parts used in production.
- 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.