Gala Company is a manufacturer of laptop computers. Various costs and expenses associated with its operations are as follows. The company intends to classify these costs and expenses into the following categories: (a) direct materials, (b) direct labor, (c) manufacturing overhead, and (d) period costs. For each item, indicate the cost category to which it belongs. (A,B,C, or D) Item Category 1. Property taxes on the factory building. select the cost category 2. Production superintendents’ salaries. select the cost category 3. Memory boards and chips used in assembling computers. select the cost category 4. Depreciation on the factory equipment. select the cost category 5. Salaries for assembly-line quality control inspectors. select the cost category 6. Sales commissions paid to sell laptop computers. select the cost category 7. Electrical components used in assembling computers. select the cost category 8. Wages of workers assembling laptop computers. select the cost category 9. Soldering materials used on factory assembly lines. select the cost category 10. Salaries for the night security guards for the factory building. select the cost category

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Gala Company is a manufacturer of laptop computers. Various costs and expenses associated with its operations are as follows.

The company intends to classify these costs and expenses into the following categories: (a) direct materials, (b) direct labor, (c) manufacturing overhead, and (d) period costs.

For each item, indicate the cost category to which it belongs. (A,B,C, or D)

	Item	Category
1.	Property taxes on the factory building.	select the cost category
2.	Production superintendents’ salaries.	select the cost category
3.	Memory boards and chips used in assembling computers.	select the cost category
4.	Depreciation on the factory equipment.	select the cost category
5.	Salaries for assembly-line quality control inspectors.	select the cost category
6.	Sales commissions paid to sell laptop computers.	select the cost category
7.	Electrical components used in assembling computers.	select the cost category
8.	Wages of workers assembling laptop computers.	select the cost category
9.	Soldering materials used on factory assembly lines.	select the cost category
10.	Salaries for the night security guards for the factory building.	select the cost category