This exercise continues the Sherman Lawn Service, Inc., situation from Exercise 14-32 of Chapter 14. Sherman is considering manufacturing a weed eater. Sherman expects to incur the following manufacturing costs:
Shaft and handle of weed eater
Motor of weed eater
Factory labor for workers assembling weed eaters
Nylon thread in weed eater
Glue to hold housing together
Plant janitorial wages
Depreciation on factory equipment
Rent on plant
Sales commission expense
Administrative salaries
Plant utilities
Shipping costs to deliver finished weed eaters to customers
Requirement
1. Classify each cost as either direct materials, direct labor, factory overhead, or period costs.
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