Question

Instructions Classify the following manufacturing costs and expenses by using the following code letters: A Direct materials cost B. Direct labor cost C. Manufacturing overhead cost D. Period cost Wood You Manufacturing Company incurs the following costs and expenses in making furniture: 1. Insurance on delivery equipment 2. Oak and cherry wood used in desks and chairs 3. Lubricants, rosin, and polishing compounds used in manufacturing 4. Advertising in trade magazines 5. Rent on leased factory machinery 6. Wages of assembly line workers 7. Salesperson's commissions 8. Insurance on factory machines 9. Depreciation on factory machinery 10. Wages of factory janitors 15 Hanover Manufacturing begins operations on April 1. Information from job cost sheets shows the following: Manufacturing Costs Assigned (non-cumulative) April May June $10,200 5,100 $6,400 3,600 5.900 $4,000 7,300 7,400 3,100 16 Job 15 was completed in April. Job 16 was completed in May. Job 18 was completed in June. Each job was sold in the month following completion. Instructions: Determine the following amounts: 1. Work in process inventory, April 30 2. Finished goods inventory, April 30 3. Work in process inventory, May 31 4. Finished goods inventory, May 31 5. Work in process inventory, June 30 6. Finished goods inventory, June 30

Answer 1

1) Classification

Insurance on delivery equipment	Period cost
Oak and Cherry wood used in desks and chairs	Direct material
Lubricants, rosin and polishing compounds used in manufacturing	Manufacturing overhead
Advertising in trade magazines	Period cost
Rent on leased factory machine	Manufacturing overhead
Wages of assembly line workers	Direct labor
Sales person's commission	period cost
Insurance on factory machine	manufacturing overhead
Depreciation on factory machine	Manufacturing overhead
Wages of factory janitor	Manufacturing overhead

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