Question

Gala Company is a manufacturer of laptop computers. Various costs and expenses associated with its operations are as follows.
1. Property taxes on the factory building.
2. Production superintendents’ salaries.
3. Memory boards and chips used in assembling computers.
4. Depreciation on the factory equipment.
5. Salaries for assembly-line quality control inspectors.
6. Sales commissions paid to sell laptop computers.
7. Electrical components used in assembling computers.
8. Wages of workers assembling laptop computers.
9. Soldering materials used on factory assembly lines.
10. Salaries for the night security guards for the factory building.
The company intends to classify these costs and expenses into the following categories:
(a) Direct materials,
(b) Direct labor,
(c) Manufacturing overhead,
(d) Period costs.

Instructions
List the items (1) through (10). For each item, indicate the cost category to which it belongs.



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  • CreatedMarch 02, 2015
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