Instructions

Identify each statement as true or false. If false, indicate how to correct the statement.

E$1\mathrm{.}2($LO $2),$ C Presented below is a list of costs and expenses usually incurred by Barnum Corporation, a manufacturer of furniture, in its factory.

Classify costs into three classes of manufacturing costs.

Salaries for assembly line inspectors.

Insurance on factory machines.

Property taxes on the factory building.

Factory repairs.

Upholstery used in manufacturing furniture.

Wages paid to assembly line workers.

Factory machinery depreciation.

Glue, nails, paint, and other small parts used in production.

Factory supervisors' salaries.

Wood used in manufacturing furniture.