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Managerial Accounting
15th Edition
ISBN: 9781337912020
Author: Carl Warren, Ph.d. Cma William B. Tayler
Publisher: South-Western College Pub
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
Transcribed Image Text:expenses into the following categories: direct materials, direct labor, manufacturing
hich it belongs.
ing.
ries.
assembling computers.
ipment.
pectors.
I laptop computers.
in assembling computers.
ing laptop computers.
on factory assembly lines.
curity guards for the factory building.
Category
Direct Labor
Direct Materials
Direct Materials and Manufacturing Overhead
Manufacturing Overhead
Period Costs

Transcribed Image Text: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: direct materials, direct labor, manufacturing
overhead, and period costs.
For each item, indicate the cost category to which it belongs.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Property taxes on the factory building.
Production superintendents' salaries.
Memory boards and chips used in assembling computers.
Depreciation on the factory equipment.
Salaries for quality control inspectors.
Sales commissions paid to sell laptop computers.
Electrical components used in assembling computers.
Wages of workers assembling laptop computers.
Soldering materials used on factory assembly lines.
Salaries for the night security guards for the factory building.
Category
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