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.
Property taxes on the factory building.
Period Costs Direct Materials Direct Labor Manufacturing Overhead Direct Materials and Manufacturing Overhead
Production superintendents’ salaries.
Period Costs Direct Materials and Manufacturing Overhead Direct Materials Manufacturing Overhead Direct Labor
Memory boards and chips used in assembling computers.
Manufacturing Overhead Direct Materials and Manufacturing Overhead Direct Labor Direct Materials Period Costs
Depreciation on the factory equipment.
Direct Materials Direct Materials and Manufacturing Overhead Direct Labor Manufacturing Overhead Period Costs
Salaries for assembly-line quality control inspectors.
Direct Materials and Manufacturing OverheadDirect MaterialsPeriod CostsDirect Labor or Manufacturing Overhead
Sales commissions paid to sell laptop computers.
Period CostsManufacturing OverheadDirect Materials and Manufacturing OverheadDirect LaborDirect Materials
Electrical components used in assembling computers.
Manufacturing OverheadDirect MaterialsPeriod CostsDirect Materials and Manufacturing OverheadDirect Labor
Wages of workers assembling laptop computers.
Period CostsDirect Materials and Manufacturing OverheadDirect LaborDirect MaterialsManufacturing Overhead
Soldering materials used on factory assembly lines.
Direct Materials and Manufacturing OverheadDirect LaborManufacturing OverheadPeriod CostsDirect Materials
Salaries for the night security guards for the factory building.
Manufacturing OverheadPeriod CostsDirect Materials and Manufacturing OverheadDirect MaterialsDirect Labor
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