PROBLEM 1 - CLASSIFICATION OF COSTS AND EXPENSES

Instructions: Classify the following manufacturing costs and expenses by using the following code letters:

A. Direct materials cost

B. Direct labor cost

C. Manufacturing overhead cost

D. Period cost

Brooks Manufacturing Company incurs the following costs and expenses in making furniture:

____ 1. Insurance on factory building

____ 2. Oak and pine wood used in desks and chairs

____ 3. Lubricants, rosin, and polishing compounds used in manufacturing

____ 4. Advertising in trade magazines

____ 5. Rent on leased factory machinery

____ 6. Wages of assembly line workers

____ 7. Salesperson's commissions

____ 8. Depreciation on delivery equipment

____ 9. Depreciation on factory machinery

____ 10. Wages of factory maintenance workers