PROBLEM 1 - CLASSIFICATION OF COSTS AND EXPENSES Instructions: Classify the foll

ID: 2535621 • Letter: P

Question

PROBLEM 1 - CLASSIFICATION OF COSTS AND EXPENSES

Instructions: Classify the following manufacturing costs and expenses by using the following code letters:

A. Direct materials cost

B. Direct labor cost

C. Manufacturing overhead cost

D. Period cost

Brooks Manufacturing Company incurs the following costs and expenses in making furniture:

____ 1. Insurance on factory building

____ 2. Oak and pine wood used in desks and chairs

____ 3. Lubricants, rosin, and polishing compounds used in manufacturing

____ 4. 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 workers

1. Insurance on factory building. - C

2. Oak and pine wood used in desks and chairs. - A

3. Lubricants, rosin, and polishing compounds used in manufacturing. - C

4. Advertising in trade magazines. - D

5. Rent on leased factory machinery. - C

6. Wages of assembly line workers. - B

7. Salesperson's commissions. - D

8. Depreciation on delivery equipment. - D

9. Depreciation on factory machinery. - C

10. Wages of factory maintenance workers. - C

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