Question

A factory manufactures jelly. The jars of jelly are packed six to a box, and the boxes are sold to grocery stores. The following types of cost were incurred:
Jars
Sugar
Fruit
Pectin (thickener used in jams and jellies)
Boxes
Depreciation on the factory building
Cooking equipment operators’ wages
Filling equipment operators’ wages
Packers’ wages
Janitors’ wages
Receptionist’s wages
Telephone
Utilities
Rental of Santa Claus suit (for the annual
Christmas party for factory children)
Supervisory labor salaries
Insurance on factory building
Depreciation on factory equipment
Oil to lubricate filling equipment

Required:
Classify each of the costs as direct materials, direct labor, or overhead by using the following table. The row for ‘‘Jars’’ is filled in as an example.


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  • CreatedSeptember 22, 2015
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