Question

Presented below is a list of costs and expenses usually incurred by Barnum Corporation, a manufacturer of furniture, in its factory. Classify the below items into the following categories: (a) direct materials, (b) direct labor, and (c) manufacturing overhead. Item Category 1. Salaries for assembly line inspectors. 2. Insurance on factory machines. 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. Click if you would like to Show Work for this question: Open Show Work

Answer 1

Answer:

The list of items are as follows:

1. Salaries for assembly line inspectors - direct labor or manufacturing overhead

2. Insurance on factory machines - manufacturing overhead

3. Property taxes on the factory building - manufacturing overhead

4. Factory repairs - manufacturing overhead

5. Upholstery used in manufacturing furniture - direct materials

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 materials