Use the working papers from Work Together 19-1 above. Work independently to complete the following problem.

1. For each of the following costs, determine whether the cost should be classified as direct materials, direct labor, or factory overhead.

2. Specify the subsidiary ledger (materials ledger, cost ledger, finished goods ledger) in which the cost is first recorded.

a. Rivets used in the production of gutters.

b. Wages earned by a maintenance employee.

c. The property taxes of the factory.

d. Fringe benefits of the factory supervisor.

e. Wages earned by an employee who inspects finished gutters before they leave the factory.

Data from Work Together 19-1

An analysis sheet for Gutman’s Gutters, a firm that manufactures aluminum and steel gutters, is included in the Working Papers. Your instructor will guide you through the following examples.

1. For each of the following costs, determine whether the cost should be classified as direct materials, direct labor, or factory overhead.

2. Specify the subsidiary ledger (materials ledger, cost ledger, finished goods ledger) in which the cost is first recorded.