Goldings Limited produces sports wears for school children. The company incurred the following costs in the production of its inter-school sports wears:

Required

1. Classify each of the costs listed above as either direct or indirect costs.
2. Compute the total manufacturing cost.

Transcribed Image Text:

Cost Materials used in the product Depreciation on factory machine Factory insurance Labor cost for factory workers Factory repairs Advertising expense Distribution expenses Sales commission Secretary's salary Amount £100,000 £ 80,000 £ 6,000 £120,000 £ 10,000 £ 35,000 £ 15,000 £ 20,000 £ 25,000