Saturday, 27 June 2015

Determine whether each of the following costs should be classified as direct materials (DM),

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Determine whether each of the following costs should be classified as direct materials (DM), direct labor (DL), or manufacturing overhead (MO). (a) ______ Frames and tires used in manufacturing bicycles. (b) ______ Wages paid to production workers. (c) ______ Insurance on factory equipment and machinery. (d) ______ Depreciation on factory equipment. BE1-4 Indicate whether each of the following costs of an automobile manufacturer would be classified as direct materials, direct labor, or manufacturing overhead. (a)______Manufacturing overhead. (e) _______Factory machinery lubricants. (b)______Engine. (f)________Tires. (c)_____Wages of assembly line worker. (g)________Steering wheel. (d)_____Depreciation of factory machinery. (h)________Salary of painting supervisor.
BE1-5 Identify whether each of the following costs should be classified as product costs or period costs. (a)_____Manufacturing overhead. (d)_____Advertising expenses. (b)_____Selling expenses. (e)_____Direct labor. (c)_____Administrative expenses. (f)_____Direct Materials.
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