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.

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.

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4PA: Listed as follows are various costs found in businesses. Classify each cost as a fixed or variable...

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Concept explainers

Management by Exception

A manager’s job is a very tough one. A manager needs to look at the various areas of work and as a manager he has to look after two or more important jobs or activities at the same time for the growth of the business. In order to do all these things in an effective manner, a manager must adopt or practice different management styles and tactics.

Question

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

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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