Manufacturing Costs Jordan Industries is a manufacturing company that produces solid oak office furniture.

During the year, the following costs were incurred. The building depreciation and the utilities are allocated three-fourths to production and one-fourth to administration. The cost of furniture parts can be traced to specific production runs.

1. Classify the costs into the following four categories: direct materials, direct labor, manufacturing overhead, and period costs.
2. Calculate the total amount of cost for each category.

Transcribed Image Text:

Oak wood 50,000 Miscellaneous supplies (glue, saw blades, varnish, etc.) 10,000 Furniture parts (wheels, locks, etc.) 5,500 Payroll-plant manager's salary 25,000 Payroll-administrative salaries 100,000 Payroll-production-line employees' wages 45,500 Building depreciation 28,000 Maintenance-plant and equipment 5,000 Utilities.... Income taxes 16,000 8,500