E1-5 Cost classification Classify the following as direct materials, direct labor, factory over- head, or selling and administrative expense. a. Steel used in an overhead door plant. b. Cloth used in a shirt factory. c. Fiberglass used by a sailboat builder. d. Cleaning solvent for the factory floor. e. Wages of a binder employed in a printing plant. f. Insurance on factory machines. g. Rent paid for factory buildings. h. Wages of the Machining Department supervisor. i. Leather used in a shoe factory. j. Wages of a factory janitor. k. Electric power consumed in operating factory machines. I. Depreciation on corporate offices.
E1-5 Cost classification Classify the following as direct materials, direct labor, factory over- head, or selling and administrative expense. a. Steel used in an overhead door plant. b. Cloth used in a shirt factory. c. Fiberglass used by a sailboat builder. d. Cleaning solvent for the factory floor. e. Wages of a binder employed in a printing plant. f. Insurance on factory machines. g. Rent paid for factory buildings. h. Wages of the Machining Department supervisor. i. Leather used in a shoe factory. j. Wages of a factory janitor. k. Electric power consumed in operating factory machines. I. Depreciation on corporate offices.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:E1-5
Cost classification
Classify the following as direct materials, direct labor, factory over-
head, or selling and administrative expense.
a. Steel used in an overhead door plant.
b. Cloth used in a shirt factory.
c. Fiberglass used by a sailboat builder.
d. Cleaning solvent for the factory floor.
e. Wages of a binder employed in a printing plant.
f. Insurance on factory machines.
g. Rent paid for factory buildings.
h. Wages of the Machining Department supervisor.
i. Leather used in a shoe factory.
j. Wages of a factory janitor.
k. Electric power consumed in operating factory machines.
I. Depreciation on corporate offices.
Transcribed Image Text:m. Fuel used in heating a factory.
n. Paint used in the manufacture of jet skis.
o. Wages of an ironworker in the construction business.
p. Electricity used in lighting sales offices.
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