The cost categories in the following list are typical of many manufacturing operations: a. Direct materials: (1)
Question:
a. Direct materials:
(1) Sheet steel
(2) Iron castings
b. Assembly parts:
(1) Part 24
(2) Part 15
c. Direct labor
d. Engineering labor
e. Indirect labor
f. Operating supplies
g. Small tools
h. Depreciation—plant
i. Depreciation—machinery
j. Supervisory salaries
k. Electrical power
l. Insurance and taxes—plant
m. President’s salary
n. Employee benefits
Identify each cost as direct or indirect, assuming that it was incurred in
(1) A traditional manufacturing setting
(2) A JIT environment.
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1 and 2 Traditional JIT Setting Environment a Direct materials ...View the full answer
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Related Book For 
Principles of Accounting
ISBN: 978-1133626985
12th edition
Authors: Belverd E. Needles, Marian Powers and Susan V. Crosson
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