Question: 2-The PC Works assembles custom computers from components supplied by various manufacturers. The compony is very small and its assembly shop and retail sales store


2-The PC Works assembles custom computers from components supplied by various manufacturers. The compony is very small and its assembly shop and retail sales store are housed in a single facility in a Redmosd, Washingson, indastrial park. Listed belew are some of the costs that are incurred at the company. Reyaired: For cach cost, indicate whether it would most likely be classificd as direct laboc, direct materials, manuficturing eycthead, selling, of an administantive cost, 1. The cost of a hand drive installed in a computer. 2. The cost of adverising is the Paget Sound Computer User nesspaper. 3. The wages of enployes who assemble conpulers trom conponents. 4. Sales comenissions paid to the company's salespeople. 5. The wager of the assembly shop's supervivor. 6. The wages of the company's aceountant. 2-The PC Works assembles custom computers from components supplied by various manufacturers. The company is very small and its assembly shop and retail sales store are housed in a single facility in a Redmond, Washington, industrial park. Listed below are some of the costs that are incurred at the company. Required: For each cost, indicate whether it would most likely be classified as direct labor, direct materials, manufacturing overhead, selling, or an administrative cost. 1. The cost of a hard drive installed in a computer. 2. The cost of advertising in the Puget Sound Computer User newspaper. 3. The wages of employees who assemble computers from components. 4. Sales commissions paid to the company's salespeople. 5. The wages of the assembly shop's supervisor. 6. The wages of the company's accountant. Required: Classify these costs according to the various cost terms used in the chapter. Carefully study the classification of each cost. Cost liem Direct Material Direct Labor Manufacturing Overhead Marketing or Selling Administrative Cost Cost 2-The PC Works assembles custom computers from components supplied by various manufacturers. The company is very small and its assembly shop and retail sales store are housed in a single facility in a Redmond, Washington, industrial park. Listed below are some of the costs that are incurred at the company. Required: For each cost, indicate whether it would most likely be classified as direct labor, direct materials, manufacturing overhead, selling, or an administrative cost. 1. The cost of a hard drive installed in a computer. 2. The cost of advertising in the Puget Sound Computer User newspaper. 3. The wages of employees who assemble computers from components. 4. Sales commissions paid to the company's salespeople. 5. The wages of the assembly shop's supervisor. 6. The wages of the company's accountant. Required: Classify these costs according to the various cost terms used in the chapter. Carefully study the classification of each cost. Cost liem Direct Material Direct Labor Manufacturing Overhead Marketing or Selling Administrative Cost Cost
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