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Category > Accounting Posted 23 Aug 2017 My Price 7.00

factory manufactures jelly.

Exercise 13-37  CLASSIFYING COST OF PRODUCTION

A factory manufactures jelly. The jars of jelly are packed six to a box, and the boxes are sold to grocery stores. The following types of cost were incurred:

Jars Sugar Fruit

Pectin (thickener used in jams and jellies) Boxes

Depreciation on the factory building Cooking equipment operators’ wages Filling equipment operators’ wages Packers’ wages

Janitors’ wages Receptionist’s wages Telephone

Utilities

Rental of Santa Claus suit (for the annual Christmas party for factory children) Supervisory labor salaries

Insurance on factory building Depreciation on factory equipment Oil to lubricate filling equipment

 

Required:

Classify each of the costs as direct materials, direct labor, or overhead by using the fol- lowing table. The row for ‘‘Jars’’ is filled in as an example.

 

 

Costs                 Direct Materials              Direct Labor

Jars                         X

 

Manufacturing Overhead

 

 

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Maurice Tutor
(5)
Status NEW Posted 23 Aug 2017 11:08 PM My Price 7.00

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