Question

1. Ford Manufacturing Company incurs the following manufacturing costs and expenses during the month of May. (12 pts)

    1.    Assembly line wages

    2.    Raw materials used directly in product

    3.    Depreciation on office equipment

    4.    Property taxes on factory building

    5.    Rent on factory building

    6.    Sales commissions

    7.    Depreciation on factory equipment

    8.    Factory utilities

    9.    Wages for factory maintenance workers

10.    Advertising

11.    Indirect materials used in production

12.    Factory manager's salary

Instructions

Complete the following matrix by placing an X mark under the appropriate headings.

                           Direct        Direct        Manufacturing       Period

Cost Item        Materials      Labor            Overhead                                           Costs

       1.

       2.

       3.

       4.

       5.

       6.

       7.

       8.

       9.

     10.

     11.

            12.

Answer 1

Classification

Cost items	Direct material	Direct labor	Manufacturing overhead	Period cost
1  Assembly line wages		X
2 Raw materials used directly in product	X
3 Depreciation on office equipment				X
4 Property taxes on factory building			X
5.    Rent on factory building			X
6 Sales commission				X
7.    Depreciation on factory equipment			X
8.    Factory utilities			X
9.    Wages for factory maintenance workers			X
10 Advertising				X
11.    Indirect materials used in production			X
12.    Factory manager's salary			X