Presented below is a list of costs and expenses incurred in the factory by Nu-Wa

ID: 2482764 • Letter: P

Question

Presented below is a list of costs and expenses incurred in the factory by Nu-Way Corporation, a manufacturer of recreational vehicles.

____ 1. Property taxes on the factory land

____ 2. Nails and glue used in production

____ 3. Cabinet maker's wages

____ 4. Factory supervisors’ salaries

____ 5. Metal used in manufacturing

____ 6. Depreciation on factory machines

____ 7. Factory utilities

____ 8. Carpeting for the recreational vehicles

____ 9. Property taxes on the factory building

____ 10. Insurance on factory equipment

Instructions
Classify the above items into the following categories:
DM — Direct Materials
DL — Direct Labor
MO — Manufacturing Overhead

MO:1. Property taxes on the factory land

MO:2. Nails and glue used in production

DL:3. Cabinet maker's wages

MO:4. Factory supervisors’ salaries

DM:5. Metal used in manufacturing

MO:6. Depreciation on factory machines

MO:7. Factory utilities

DM: 8. Carpeting for the recreational vehicles

MO:9. Property taxes on the factory building

MO:10. Insurance on factory equipment

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