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Category > Accounting Posted 21 Sep 2017 My Price 9.00

manufactures jelly

Exercise 2-32 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 Christmas party for children of factory workers)

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 following table. The row for ‘‘Jars’’ is filled in as an example.

 

 

Costs

Direct Materials

Direct Labor         Manufacturing Overhead

 

 

Jars

X

 

 

 

 

 

 

Direct materials

$400,000

Direct labor

80,000

Manufacturing overhead

320,000

 

 

 

 

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Maurice Tutor
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Status NEW Posted 21 Sep 2017 08:09 PM My Price 9.00

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