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.Property taxes on the factory building.2.Production superintendents' salaries.3.Memory boards and chips used in assembling computers.4.Depreciation on the factory equipment.5.Salaries for quality control inspectors.6.Sales commissions paid to sell laptop computers.7.Electrical components used in assembling computers.8.Wages of workers assembling laptop computers.9.Soldering materials used on factory assembly lines.10.Salaries for the night security guards for the factory building.>>>>>>>>>>

The direct materials are the materials used for production process directly. The direct labor…

Answered: 1. Property taxes on the factory…

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter2: Financial Statements And The Annual Report

Section: Chapter Questions

Problem 2.1P: Materiality Joseph Knapp, a newly hired accountant wanting to impress his boss, stayed late one...

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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.
Property taxes on the factory building.
2.
Production superintendents' salaries.
3.
Memory boards and chips used in assembling computers.
4.
Depreciation on the factory equipment.
5.
Salaries for quality control inspectors.
6.
Sales commissions paid to sell laptop computers.
7.
Electrical components used in assembling computers.
8.
Wages of workers assembling laptop computers.
9.
Soldering materials used on factory assembly lines.
10.
Salaries for the night security guards for the factory building.
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