Acct 2102 Ch 1 In-Class (Cost Classification)

What are the three manufacturing costs?

• Direct materials
• Direct sales
• Direct labor
• Manufacturing overhead
• Selling and administrative costs

What are included in non-manufacturing costs?

• Selling costs
• Adminsitrative Costs
• Manufacturing Overhead

Classify this cost: 2 lbs of butter used to make a batch of cookies.

• Product/Manufacturing cost
• Period/Non-manufacturing cost

Classify this cost: 2 lbs of butter used to make a batch of cookies.

• Direct materials
• Direct labor
• Manufacturing overhead

Classify this cost: Wages paid to security guard in the factory.

• Product/Manufacturing cost
• Period/Non-manufacturing cost

Classify this cost: Wages paid to security guard in the factory.

• Direct materials
• Direct labor
• Manufacturing overhead

Classify this cost: Cost of shipping finished goods to customers.

• Product/Manufacturing cost
• Period/Non-manufacturing cost

Classify this cost: Cost of shipping finished goods to customers.

• Selling expense
• Administrative expense

Classify this cost: Depreciation on mixers and ovens.

• Product/Manufacturing cost
• Period/Non-manufacturing cost

Classify this cost: Depreciation on mixers and ovens.

• Direct materials
• Direct labor
• Manufacturing overhead